Professional Documents
Culture Documents
Table of Contents
1.
2.
Introduction.........................................................................................................................4
1.1.
Background .................................................................................................................4
1.2.
1.3.
Transaction structure..................................................................................................10
2.2.
2.2.1.
2.2.2.
2.3.
3.
2.3.1.
2.3.2.
2.3.3.
3.2.
3.2.1.
3.2.2.
3.3.
3.3.1.
3.3.2.
3.4.
3.4.1.
3.4.2.
3.4.3.
3.5.
List of Figures
Figure 1-1: Scoring methodology ................................................................................................8
Figure 1-2: Qualified PURA projects for which DPRs have been received ..................................9
Figure 2-1: Transaction structure...............................................................................................10
Figure 2-2: Overview of the Concession Agreement..................................................................11
1. Introduction
1.1. Background
Lack of livelihood opportunities, modern amenities and services for decent living in rural areas
results in a sense of deprivation and dissatisfaction amongst a large percentage of population and
leads to migration of people to urban areas. This is primarily due to the wide gaps in the
availability of physical and social infrastructure between rural and urban areas. In order to
address these issues, the Government, in the past has launched various schemes at different
points of time. However, due to several reasons the impact has not been very visible. The
deliveries of these schemes were not simultaneous and although huge sums were earmarked for
capital expenditure, very little resources were spent on the operation and maintenance of the
assets. Also, each of these schemes operated autonomously and the standards set for
infrastructure services delivery in the rural areas was far below those for the urban population.
Hence, inspite of several schemes, there continued to be a substantial flow of migration from the
rural to urban areas. In order to catalyze the convergence between different infrastructure
schemes and create a new model for management of urban services in the rural areas, the
Provision for Urban Amenities in Rural Areas ("PURA") scheme has been developed.
The mission of the PURA scheme is holistic and accelerated development of compact areas
around a potential growth centre in a Gram Panchayat (or cluster of contiguous Gram
Panchayats) through Public Private Partnership ("PPP") framework for providing urban
amenities and livelihood opportunities to improve the quality of life in rural areas. The scheme
aims to provide urban amenities and livelihood opportunities in rural areas to bridge the ruralurban divide.
This aim of the PURA scheme is proposed to be achieved under the framework of PPP between
Gram Panchayats and private sector partner. Core funding shall be sourced from the convergence
of Central Government schemes and complemented by additional support through the PURA
scheme. The private sector shall also bring on board its share of investment besides operational
expertise. The PURA scheme would be implemented and managed by the private sector on
considerations of economic viability but designed in a manner whereby it is fully aligned with
the overall objective of rural development. To attract the private sector, the scheme has a
project based design with well defined risks, identified measures for risk mitigation and risks
sharing among the sponsoring authority (Gram Panchayat), Government, State Government and
the Selected Bidder.
Village streets
Drainage
Skill development#
Development
economic activities#
of
Telecom
Non conventional
electricity generation,
etc.
Any
other
rural
economy based project
An activity from the list of Add-on Economic projects could be included in the activities
undertaken hereunder
Amenities under Ministry of Rural Development (MoRD) Schemes: The Concessionaire shall be
responsible for delivering amenities and services such as water and sewerage, construction and
maintenance of village streets, drainage, solid waste management and skill development under
the following ongoing schemes of the MoRD: Special Projects for Skill Development of Rural
Youths under Swarnjayanti Gram Swarozgar Yojana (SGSY), National Rural Drinking Water
Programme (NRDWP), Total Sanitation Campaign (TSC), etc. For development of economic
activities, support may also be drawn from the National Rural Livelihood Mission (Restructured
SGSY).
Amenities under Non-MoRD Schemes: The PURA may include schemes of other central
government ministries and state government ministries, that are available on tap as some areas
of critical infrastructure (urban amenities) necessary for the project are not within the purview of
the MoRD, such as Ministry of Panchayati Raj (Rural Business Hub scheme and others),
Ministry of New and Renewable Energy (for solar village street lighting and non conventional
electricity generation) and Ministry of Communications and Information Technology (for
telecom services) etc. The Concessionaire shall access the support under such schemes of
relevant Ministries other than MoRD and dovetail into PURA for delivering the identified urban
amenities.
Add-on Economic Projects: It is necessary that the Concessionaire creates a pipeline of
commercially viable and people centric projects in the nature of add-ons to the list of urban
amenities to be provided. It is mandatory that the Concessionaire undertakes at least 1 (one) such
Add-on Economic activity in the proposed project. The Concessionaire has to ensure that the
minimum size of such Add on Economic Facility or Funded Add on Economic Facility shall be
atleast 5% (five percent) of the capital component of project cost or Rs. 1 (one) crore, whichever
is greater (land cost is not included). However, the Concessionaire has the choice of undertaking
more than 1 (one) such activity. In the event a Concessionaire wishes to undertake more than 1
(one) Add on Economic activity or Funded Add on Economic activity, then the Concessionaire
has to ensure that the total cost of Add on Economic Facilities and Funded Add on Economic
Facilities shall not exceed 35% (thirty five percent) of the capital component of the project cost
(land cost is not included). To ensure delivery of all elements of the project, add-ons submitted
as part of the Detailed Project Report (DPR) shall become essential/mandatory. Such add-ons
will generate economic and livelihood opportunities and are preferably developed in partnership
with the Gram Panchayat and may inter-alia include:
Village tourism projects that provide direct employment to locals and opportunities for
incomes to local artisans, performing artists, etc
Setting up good skill development institution this would link up with the economic activity
initiated in the project
Integrated rural business centres that will help the local economy to upgrade to commercial
scale
Each Project should have at least one such activity included in the project. In the event any
funding from any Government Instrumentality has been sought by the Concessionaire for any
Add-on Economic activity, then such activity shall be regarded as Funded Add-on Economic
Facility.
Concept
Concept Plan
Plan
600
600
400
400
400
400
Community
Community
Oriented
Oriented
200
200
Min
Min experience
experience
>=
>= Rs.
Rs. 50
50 crores
crores
84
(83.5)
84 (83.5)
Min
Min experience
experience
>=
>= 11 project
project
40
40
For
For experience
experience
>=
>= Rs.
Rs. 240
240 crores
crores
400
400
For
For experience
experience
>=
>= 55 projects
projects
200
200
Infrastructure
Infrastructure
Bidder/
Bidder/ Lead
Lead Member
Member to
to meet
meet minimum
minimum financial
financial capacity
capacity (Net
(Net
worth)
worth) of
of Rs.
Rs. 25
25 crores.
crores.
Bidder
Bidder needs
needs to
to achieve
achieve minimum
minimum 50%
50% (200
(200 points)
points) for
for his
his concept
concept
Uniqueness
Uniqueness &
&
Quality
Quality of
of Concept
Concept
100
100
Coverage
Coverage of
of
Mandatory
Mandatory Services
Services
50
50
Coverage
Coverage of
of Non
Non
MoRD
MoRD Schemes
Schemes
100
100
Impact
Impact on
on local
local
livelihood
livelihood
50
50
Sustainability
Sustainability
100
100
In response to the final RFP documents, nine bidders responded by submitting 14 bids. On the
evaluation of the bids, MoRD qualified 11 bids who met the eligibility requirements of the RFP
document. MoRD issued the Letter of Intent to the qualified bidders and asked them to prepare
the Detailed Project Reports for their respective PURA projects.
The Detailed Project Reports (DPRs) for eight PURA projects have been submitted by the
qualified bidders to the MoRD. MoRD is currently undertaking the evaluation of the DPRs
submitted by the qualified bidders. The results of the evaluation will be presented to the Inter
Ministerial Empowered Committee (EC) constituted for the project. MoRD shall issue a Letter of
Award to the only those projects, whose DPRs have been approved by the EC. Post the issue of
the Letter of Award, the Concession and State Support Agreements shall be executed. The
following figure depicts the qualified PURA projects for which the DPRs have been received by
MoRD.
Figure 1-2: Qualified PURA projects for which DPRs have been received
Map for representation only
Dehradun
Uttarakhand
Jaipur
Rajasthan
Rajasmand
Warangal
4
Andhra
Pradesh
Malappuram
Thrissur
7
8
Krishna
Puducherry
Kerala
Concession
Agreement
DRDA
(selected by MoRD)
Equity
PURA Grant
MoRD
Through
SPV
DRDA
Release of MoRD
share under MoRD
schemes
Facilitate release of
GOI share in funds
sanctioned under
non- MoRD schemes
State Support
Agreement
Release of State
govt. share in funds
under MoRD & nonMoRD schemes
through DRDA
Access, Land,
Core facilities,
Clearances
/approvals
Gram
Panchayat(s)
State
Govt.
These relationships are governed by the Concession Agreement and the State Support Agreement
respectively and shall be operational for a concession period of 13 years.
10
Commercial
Operations
Date
Date
Fulfillment of
Conditions
Precedent
Scheduled
Project
Completion Date
Expiry
of the
Agreement
Project
Completion
Certificate
3 years
Construction Period
10 years
Operations Period
Concession Period
As highlighted in the above figure, out of the total concession period of 13 years, three years
have been allocated for development of the project facilities and 10 years for operating and
maintaining the same. The Concessionaire under this Agreement shall be granted to oblige or
entitle to:
1. Access and license to Site A (for executing its obligations relating to MoRD and non MoRD
schemes);
2. Develop, design, engineer, finance, procure, operate and maintain the Project facilities;
3. Right to collect user charges for facilities under MoRD schemes and non MoRD schemes at
such prevailing rates sanctioned by Gram Panchayat and/or state government;
4. Right to decide the rate, charge and collect user charges for add on facilities;
5. Right to lease/sub-lease the add on facilities;
6. Purchase or acquire on lease, on its own cost, land for Site B for add on facilities;
7. Not to use the land for any other purpose other than the purpose specified in the Agreement;
and
8. No right to mortgage Site A, facilities under MoRD and non-MoRD schemes.
The following paragraphs highlight the obligations of the parties to the Concession Agreement,
except the obligations of DRDA, which are detailed in the subsequent section.
11
12
13
14
15
16
quantified and detailed out in the Approved Detailed Project Report, along with the respective
payment schedules.
17
7. DRDA, within one week from receipt of the above certification, shall release the
relevant installment of the Scheme Fund to the Concessionaire.
18
5. The Gram Panchayat(s) shall within one week of issue of such certificate give its
concurrence to the same;
6. Such certification and other documentation issued by the Independent Engineer along
with the concurrence of the Gram Panchayat(s) shall then be submitted by the
Concessionaire to the DRDA;
7. DRDA, within one week from receipt of the certification and the necessary
documentation from the Independent Engineer, shall release the relevant installment
of the PURA Grant to the Concessionaire.
19
MoRD. This committee shall comprise of the one representative each of State Government,
DRDA, Concessionaire and each of the Gram Panchayats;
5. 5th Level: Any dispute, if not settled through the committee under the chairpersonship of
Joint Secretary, MoRD, within 30 days of a reference to it, shall be finally settled by
arbitration in accordance with the prevailing International Centre for Alternate Dispute
Resolution Arbitration Rules, 1996 (ICADR Rules).
21