Aggressing marketing of Uttar Pradesh by Chief Minister Akhilesh Yadav has started bearing fruits as government’s ambitious project to connect lucknow with Azamgarh through an expressway has found a foreign investor in form of Abu Dhabi Investment Authority (ADIA) which has shown its willingness to pump in money in this project.
“The ADIA has shown its willingness about equity funding while the government wants investment in form of soft loan. We have made our view point clear to the Authority,” CEO of Uttar Pradesh Expressway Industrial Development Authority Navneet Sehgal told The Pioneer here on Thursday.
In May this year UPEIDA CEO had visited China on the invitation of Deputy Chairman liaoning Provincial Development and Reform Commission to review Expressways of that province.
The proposal has given some breathing space to Chief Minister as liaoning Provincial Development and Reform Commission of China too had shown its inclination to invest money in this prestigious project.
Sehgal said that the AIDA has proposed an investment of Rs 15000 crore in a phased manner. The proposal will be discussed in the next meeting of the state Cabinet. Once finalized we will take a final call on the foreign investment in lucknow to Azamgarh via Ghazipur Expressway, the CEO said.
Azamgarh is the parliamentary constituency of Samajwadi Party national president Mulayam Singh Yadav. This 380 km long expressway may bring investments in eastern Uttar Pradesh which is craving for development.
This expressway would be an extension of Agra-lucknow Expressway, construction of which - according to Sehgal will be completed by the end of 2016. The construction of the lucknow-Azamgarh Expressway will start by early 2016 as it takes almost six months to set the ball rolling after Cabinet approval, he said.
Sehgal said that the feasibility report has been already been procured and a meeting with the consultant and the potential bidders has already been held in lucknow. The AIDA proposal is lie icing on the cake,” he said.
The Abu Dhabi Investment Authority (ADIA) is a sovereign wealth fund owned by Emirate of Abu Dhabi in UAE founded for the purpose of investing funds on behalf of the Government of the Emirate of Abu Dhabi. It manages the Emirate’s excess oil reserves, estimated to be as much as $500 billion.
It is not the first time AIDA would be investing in India. Earlier it has invested $300 million (Rs 1,800 crore) in the offshore fund of Kotak Reality Funds run by Kotak Mahindra Bank. It has also invested $250 million (Rs 1,500 crore) in Hines India Real Estate the Indian arm of American property development and management firm Hines.
“The AIDA proposal has given a boost to the proposal to connect west with the eastern part of the state. Government has made up its mind to build this expressway even if we do not get foreign investments. In that case this expressway will be constructed through UP’s own budget,” Sehgal said.
