Kolkata: The sanctioning of a $ 210 million loan to West Bengal by the Asian
Development Bank (ADB) for a 800 km North-South highway project is likely to give a
major impetus to business by facilitating faster movement of goods from one part of
the state to another.
The loan forms the first phase of an estimated $ 410 million long-term loan package
for the state's infrastructure development. A Board meeting of the ADB in Manila has
cleared the loan, which is likely to be disbursed by August. The total project cost
has been estimated at $ 323 million. The state and Central governments will share
the remaining part of the expenditure.
The 800-km-long "North-South Corridor" project, that proposes to connect the state
tip-to-tip by road, is important from the business point of view as there are no
good roads conducive for fast transportation of goods from the state's northern
parts to the south, where the ports are located.
Business is expected to receive an impetus once the Corridor is in place, as
transportation costs will also come down considerably.
An official source said a formal tripartite agreement between the ADB, the state and
Central governments would be signed at the ADB's headquarters in Manila soon. An
appraisal team of the bank will also visit the state next month for discussions and
inspection of the project sites.
Though the ADB and the Centre are learnt to be ready with their share, it is not yet
known how the state government would raise its share of the money. Sources said the
state government would make budgetary provisions for the project in the next fiscal
year.
The North-South Corridor project has been languishing for years after the Malaysian
company, Renong, its original promoter, pulled out because of delays in land
acquisition and other bureaucratic hurdles. The government then negotiated with the
ADB.
The new stretches, including an international standard bridge, could be built and
joined with the existing infrastructure, sources said.
The state government hopes to begin work on the project by this year-end, and
complete the same in three years' time.
India Abroad News Service
