ITIR stirs up a hornet's nest

Viability of the prestigious ITIR project is under question. How will the government source funds for the project is a big mystery. Unlike SEZs where government procures the land, in the ITIR project, the companies have to buy land from the government. The government will only provide basic amenities. The state government has put the onus of providing these amenities to the respective civic bodies. However, the civic bodies are cash-strapped and debt- ridden and crores have to be pumped in, to take up the works. With the alleged lack of clarity in the ITIR draft, one can only question…Is the ITIR even possible?

Information Technology Investment Region (ITIR) is meant to change dimensions of the city. It serves as the much needed impetus to push the city into the world class league. With the ITIR coming up in two phases (Phase I: 2013-18, Phase II: 2018-43), there will be a spurt in jobs, new avenues for work, townships etc. The ITIR will be in five zones within the Outer Ring Road (ORR) growth corridor. The government and other nodal agencies are pepped up about the project given the transformation it would bring to the city.

However, there are a few glaring loopholes in the project. First of all the state government has to procure most of the funds for ITIR. In the ITIR, the government will provide only the basic amenities. But the companies have been asked to purchase land. If the land belongs to the government, then the companies have to buy from the government at the prevailing market rates.

The government will also provide only basic amenities like water, roads, electricity and drainage and the funds required to set up these amenities in the five zones are to be borne by the respective civic authorities. Civic authorities like the HMDA, GHMC and HMWS&SB are already cash-strapped and debt-ridden, and this ploy by the government will further wreck their revenues.

Good plan, but what about execution?

Phase I (2013-18) concentrates on providing basic amenities. Four radial roads would be constructed for phase I, amongst a total of nine radial roads in five zones. These roads include Radial Road (RR) No.6: Nanal Nagar to HCU bus depot, RR No. 7: Panjagutta to Eedula Nagulapalli, RR No.8: Moosapet to BHEL Junction and RR No. 30: HCU bus depot to Vatti Nagulapalli. Laying of these roads and other related works are the responsibility of Hyderabad Metropolitan Development Authority (HMDA). The big question here is how would the debt ridden HMDA source the funds?

Govt to only provide basic amenities

ITIR is coming up in 202 sq km, of which 5.26 sq km are ear-marked for forestry, 5.47 sq km for water resources and the rest of the land for other developmental works. As per the HMDA master plan, 40.78 per cent of the land is allotted for industries, 18.88 per cent for housing, 3.27 per cent for commercial purposes, 12.26 per cent for roads, 5.27 per cent for greenery and 3.22 per cent for entertainment parks and others. APIIC has already pooled up 4,169 acres from the areas within the ORR growth corridor. However, the land has to be bought by companies that are going to setup shop and not by the government.

Who will answer these questions?

Price Waterhouse Coopers (PWC) estimated that ITIR region alone will attract an investment of Rs 2.18 lakh crore. But there are few questions that need to answered.

Water: For the phase I work, it is estimated that Rs 6,355 crore are required and of them, the state government has to pool in Rs 5,084 crore. However, the state government mandated the respective civic bodies to carry out the work. Hyderabad Metropolitan Water Supply and Sewerage Board (HMWS&SB) is cash-strapped and has recently taken Rs 1,500 crore from HUDCO for the ‘Godavari Water’ project works and is in no position to pool out funds.

In a recent interview, Water Board MD, Syamala Rao had stated that when all the projects were operational, city would no longer be thirsty. With new companies, townships coming up, water supply would still be insufficient. The draft of ITIR also hadn’t specified whether it should be a Public Private Partnership (PPP). Lack of clarity in the draft is also serving as a huge problem.

Drainage: For construction of sewerage system, in the 202 sq km, it is estimated that Rs 1,084 crore are required, of which state government has to pool in Rs 867 crore. It is notable that the HMWS&SB held its hand up for the sewage system in the GHMC area. So it would be interesting to see how it tackles this issue.

Solid waste: As the firms that would be coming up belong to the IT and ITES sector, there would be a lot of e-waste produced.

Though Rs 105 crore was estimated and ear marked for solid waste management, there is no clarity on who and how it will be done