MUMBAI, Nov 16: The Gujarat Industrial Development Corporation (GIDC) is setting up the state's first toll tax road linking major industries situated at Hazira. Slated to be commissioned by June next year, the road is being constructed at a cost of Rs 11.8 crore.

GIDC vice-chairman and managing director Ravi Saxena told this paper that the 11 kilometre long four-lane road stretching from Kribhco to Essar would also link other major industries like NTPC, Larsen & Toubro and Reliance. The toll tax project was awarded to GIDC by Gujarat Infrastructure Development Board (GIDB) after the industries in the adjoining areas refused to contribute for the development of the road as envisaged earlier under the auspices of the recently wound up Hazira Area Development Authority (HADA).

Under the earlier formula, the industries using the road were supposed to contribute a sum towards construction on the basis of the traffic intensity and per kilometre use per unit.

However, barring a couple of units, most industries did not pay and it was then decided that the development of the road be taken on a toll-tax basis, Saxena said. Since the site for the project was on the periphery of the notified area to be governed by GIDC, the development was awarded to the corporation. The state government has given a concession period of 20 years or less till the capital cost is recovered.

GIDC proposes to recover the capital cost by way of levying toll-tax ranging from Rs 5 to Rs 20 per commercial vehicle according to their tonnage. Residents of areas nearby areas will, however, be exempt from making such payment. The advertisement revenue will also be taken into consideration for the calculation of cost recovery. The hoardings displaying advertisements on the road sides will be charged by GIDC.

Though a 16 per cent loan has been sanctioned by the Housing and Urban Development Corporation (Hudco) for the full project cost, GIDC has yet not taken the disbursement. According to sources, this is the first case of infrastructure funding by Hudco.

The gas pipelines connecting the adjoining industries will be taken underground at the time of constructing the road. Though this is the first such project undertaken by GIDC, it will grab other opportunities as and when they arise, Saxena said.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.