SBI Capital Markets picked as financial advisor for Ganga Expressway

Virendra Singh Rawat

Lucknow / Nov 26, 2020

The Uttar Pradesh government has appointed SBI Capital Markets Limited for offering financial advisory services to its flagship Rs 36,402 crore Ganga Express project.

Besides, the state cabinet meeting chaired by chief minister Yogi Adityanath approved the proposal of raising funds for the mega 600 km project through the foreign direct investment (FDI) route while also giving the in principle clearance to the project.

The government has also cleared the bidding document and decided to invite expression of interest (EoI) from investors to develop the project under the public private partnership (PPP) model.

However, if the nodal agency UP Expressway Industrial Development Authority (UPEIDA) faces hurdles in developing it under the PPP mode, the government would then weigh other options.

The funds for the project would also be made available through budgetary allocation of the revenue generated from the monetisation of the Agra-Lucknow Expressway. So far, the government had allocated Rs 1,855 crore for the project, besides Rs 2,900 crore will be raised from the Housing and Urban Development Corporation Limited (HUDCO).

Ganga Expressway will provide a seamless and faster travel alongside river Ganga from Haridwar to Varanasi via Prayagraj (Allahabad), thus boosting the socioeconomic development across the state and creating jobs.

Besides, the expressway will offer connectivity linkage to the Haldia-Varanasi inland waterway transport to-and-fro Delhi and other states.

Meanwhile, the state government is planning to acquire 7,800 hectares of land costing Rs 9,255 crore for Ganga Expressway. The land will be acquired by UPEIDA across 529 villages spanning 12 districts viz. Meerut, Amroha, Bulandshahar, Badaun, Shahjahanpur, Farrukhabad, Hardoi, Kannauj, Unnao, Rae Bareli, Pratagarh and Prayagraj districts.

In recent months, the Adityanath government has tapped public sector banks to raise funds for the ongoing and proposed expressway projects, including Ganga Expressway, Purvanchal Expressway, Bundelkhand Expressway and Gorakhpur Link Expressway.

It will also provide emergency landing facility for Indian Air Force (IAF) aircraft near Shahjahanpur district. The 6-lane expressway, expandable to 8-lane if needed, will be built in 12 separate packages to facilitate speedier completion.