GIDB approves Model Concession Agreement to promote development of Tourism projects in the state

Gujarat Infrastructure Development Board has approved today, the model concession agreement for Tourism sector to be developed in the state on Public Private Partnership. The Minister of state Finance and Industries Shri Saurabhbhai Patel chaired the 57th Executive Committee Meeting of GIDB held in Gandhinagar.

The Chief Secretary Shri A. K. Jyoti, Tourism Secretary, Shri Vipul Mittra and other senior officers also attended the meeting.

This model agreement will facilitate the expeditious implementation of tourism projects on PPP format. Based on this model agreement, project specific agreements can be prepared by any Government or its instrumentality intending to develop tourism projects in the state. The agreement is developed in accordance to provisions of the Gujarat Infrastructure Development Act, 1999, and as amended by the Gujarat Infrastructure Development (Amendment) Act, 2006.

The Salient Features of the Concession Agreement include Competitive bidding process of selection, selected bidder/ the Concessionaire to be either a single entity or a group of entities (Consortium); initial concession period thirty-five (35) years and extendable on mutually agreed terms.

It also provides security to both the State Government and private entities against non-fulfilment of their respective obligations. In case where the Concession Agreement is not extended beyond the concession period, the Concessionaire shall be paid Depreciated Historic Cost on transfer of the Contracted Assets.

The State of Gujarat is leveraging on its unique strengths for developing tourism themes covering coastal tourism, business & convention tourism, weekend tourism, eco-tourism, medical tourism, heritage tourism, religious tourism, arts & culture, wayside amenities etc. Gujarat is in the process of upgrading/ creating tourism infrastructure, providing training to service providers, sensitizing local population, creating integrated themes and strengthening of local institutions. Tourism locations are being developed in an integrated manner by upgrading infrastructure, urban area development and environment improvement so as to provide the tourist an inimitable experience. Government of Gujarat has for this purpose, created a special purpose vehicle SPV; namely GUJTOP – Gujarat Tourism Opportunity Limited.

1 comment for “GIDB approves Model Concession Agreement to promote development of Tourism projects in the state

  1. n.b.
    February 20, 2011 at 4:44 am

    Are Islamists who rule PMO office, from behind the shadows of Italian Maino forcing Congress to give up Sir Creek to Pakistan?
    Why is Congress not discussing with opposition every thing?
    Sir Creek is full of Gas and Petroleum but also a tourist resource.
    Are People Of Gujarat to be given the opportunity to have their say?
    The Sir Creek is a 96 km (60 mi) strip of water disputed between India and Pakistan in the Rann of Kutch marshlands. The creek, which opens up into the Arabian Sea, divides the Kutch region of the Indian state of Gujarat with the Sindh province of Pakistan. It is located at approximately .Originally and locally it is called ‘Baan Ganga’. Sir Creek is named after the British representative.
    The long-standing dispute hinges in the actual demarcation “from the mouth of Sir Creek to the top of Sir Creek, and from the top of Sir Creek eastward to a point on the line designated on the Western Terminus”. From this point onwards, the boundary is unambiguously fixed as defined by the Tribunal Award of 1968.

    The creek itself is located in the uninhabited marshlands. During the monsoon season between June and September, the creek floods its banks and envelops the low-lying salty mudflats around it. During the winter season, the area is home to flamingoes and other migratory birds.

    The dispute lies in the interpretation of the boundary line between Kutch and Sindh. Before India’s independence, the provincial region was a part of Bombay Presidency of British India. After India’s independence in 1947, Sindh became a part of Pakistan while Kutch remained a part of India.

    Pakistan lays claim to the entire creek as per paras 9 and 10 of the Bombay Government Resolution of 1914 signed between then the Government of Sindh and Rao Maharaj of Kutch.

    The resolution, which demarcated the boundaries between the two territories, included the creek as part of Sindh, thus setting the boundary as the eastern flank of the creek. The boundary line, known as the “Green Line”, is disputed by India which maintains that it is an “indicative line”, known as a “ribbon line” in technical jargon. India sticks to its position that the boundary lies mid-channel as depicted in another map drawn in 1925, and implemented by the installation of mid-channel pillars back in 1924.

    India supports its stance by citing the Thalweg Doctrine in International Law. The law states that river boundaries between two states may be, if the two states agree, divided by the mid-channel. Though Pakistan does not dispute the 1925 map, it maintains that the Doctrine is not applicable in this case as it only applies to bodies of water that are navigable, which the Sir Creek is not. India rejects the Pakistani stance by maintaining the fact that the creek is navigable in high tide, and that fishing trawlers use it to go out to sea. Several cartographic surveys conducted have upheld the Indian claim. Another point of concern for Pakistan is that Sir Creek has changed its course considerably over the years. If the boundary line is demarcated according to the Thalweg principle, Pakistan stands to lose a considerable portion of the territory that was historically part of the province of Sindh. Acceding to India’s stance would also result in the shifting of the land/sea terminus point several kilometres to the detriment of Pakistan, leading in turn to a loss of several thousand square kilometres of its Exclusive Economic Zone under the United Nations Convention on Law of the Sea.

    In April 1965, a dispute there contributed to the Indo-Pakistani War of 1965, when fighting broke out between India and Pakistan. Later the same year, British Prime Minister Harold Wilson successfully persuaded both countries to end hostilities and set up a tribunal to resolve the dispute. A verdict was reached in 1968 which saw Pakistan getting 10% of its claim of 9,000 km² (3,500 sq. miles).

    The disputed region was at the center of international attention in 1999 after Mig-21 fighter planes of the Indian Air Force shot down a Pakistani Navy Breguet Atlantique surveillance aircraft over the Sir Creek on August 10, 1999, killing all 16 on board. India claimed that the plane had strayed into its airspace, which was disputed by the Pakistani navy. (See the Atlantique Incident).
    Economic reasons

    Though the creek has little military value, it holds immense economic gain. Much of the region is rich in oil and gas below the sea bed, and control over the creek would have a huge bearing on the energy potential of each nation. Also once the boundaries are defined, it would help in the determination of the maritime boundaries which are drawn as an extension of onshore reference points. Maritime boundaries also help in determining the limits of Exclusive Economic Zones (EEZs) and continental shelves. EEZs extend to 200 nautical miles (370 km) and can be subjected to commercial exploitation.

    The demarcation would also prevent the inadvertent crossing over of fishermen of both nations into each others’ territories.
    Dispute resolution

    Since 1969, there have been eight rounds of talks between the two nations, without a breakthrough. Steps to resolve the dispute include:

    Since neither side has conceded ground, India has proposed that the maritime boundary could be demarcated first, as per the provisions of Technical Aspects of Law of Sea (TALOS). However, Pakistan has staunchly refused the proposal on the grounds that the dispute should be resolved first. Pakistan has also proposed that the two sides go in for international arbitration, which India has flatly refused. India maintains that all bilateral disputes should be resolved without the intervention of third-parties.
    Further reading
    Bharat Bhushan, Tulbul, Sir Creek and Siachen: Competitive Methodologies, South Asian Journal, No.7 Jan-Mar 2005 accessed at July 26, 2006

    External links
    India, Pakistan in border talks BBC December 22, 2006


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