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Investor's view

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Investors at a roadshow organised by the Ministry of Shipping to attract funding for the development of lighthouses as tourism destinations raised the bogey of poor infrastructure and single-window clearance during a discussion chaired by State and Central government bureaucrats on Monday.
The Directorate General of Lighthouses and Lightships (DGLL), which comes under the Shipping Ministry, has thrown open 78 Lighthouses, where private players would be given the option of constructing resorts, food courts, arenas, etc, in the country. This is being done to market the locations as picnic or overnight tourism spots. In Tamil Nadu, Mahabalipuram, Kanyakumari and Muttom, Chennai and Rameshwaram have been identified in the first phase.
The government is looking at an investment of `10 to `15 crore per lighthouse. Government would not regulate the charges for the facilities offered and it would be  completely market-directed, a Central government official stated. Bids are expected to be finalised in the next three to five months, while the actual work on the projects would be completed in two or three years, said Captain AM Surej, Director General of Lighthouses and Lightships.
While the Central government would provide land, developers have been encouraged to submit their own ideas and plans on a location of their choice. Developers would have to meet a Minimum Development Obligation (MDO), as directed by the Ministry, officials stated.  The DGLL would act as facilitators between the developers and the State governments concerned, officials at the event said.
However, investors pointed out that pumping in money would be feasible only if the local infrastructure, primarily access roads, were in proper shape. “Lighthouses come under Central government, but for making profits we need roads and other clearances like electricity, water, etc of which State governments are in-charge,” said a Chennai-based investor. While government officials make tall promises, there wasn’t much clarity or co-ordination between government offices on paper, another investor said.

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