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Following are excerpts from a report in Economic Times.

Sunil Agarwal , President & CEO, ARSS Infra in an interview with ET Now talks about the bus terminal development project bagged by the company.

This order its after a long time that I am seeing somebody bag an order of this nature bus terminals. What is the deal, how much is the annual expenditure for this development and what you will get in return?

Yes, this is a deal for developing of bus terminal in Bhubaneswar, Odisha which is a capital of Odisha. We will be developing bus terminal for Odisha Bus Bhubaneswar. This is located in Bermuda. We have paid 56 crore premium to the government of Odisha and we have signed the concession agreement yesterday.

The total project cost of the terminal will be around 1300 crore out of which we will be developing half of the terminal as bus terminal and the basic infrastructure for bus terminal will be also used for the commercial facility which also will be developed by Government of Odisha.

Any income will not come in this year, the income will generate from after 2 year when the bus terminal will be completed. We have to develop the bus terminal in 2 years and we have to operate and maintain it for 50 more years. As far as expenditure is concerned this year we will be spending around 200 to 250 crore and coming forward this total expenditure will be completed in another 5 years.

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And when will revenues start to kick in from the same projects and what are the kind of margins that you are expecting?

See the overall margins for operating and lease rental and as well as from the commercial development we will be generating around 500 crore of margin in the period of 4 to 5 years and this margin will start generating from 2013 after development of the bus terminal in 2 years. And the basic facilities and infrastructure that we will be developing for the bus terminal the same will be used for commercial developments also.

If you start getting revenues after 2 years, what is the annuity that you expect from this project?

The annuity will be somewhere around 8200 crore a year.

For how many years would this be?

This one will continue for 15 years. …

If all these numbers are right this would be a wonderful facilty. Moreover, it will demonstrate the feasibility of other similar sized or bigger PPP projects, especially Railway Station (IR plans a world class station built on PPP mode), Airport, Metro/Light-rail.

To get a bit of background, we give the following from a slightly older report in Pioneer.

After long, the process has begun for developing three bus stands with modern facilities in the State. The bus stands to be developed in public-private partnership (PPP) mode include Baramunda Bus Stand of Bhubaneswar, Badambadi main Bus Stand of Cuttack and the Dhenkanal Bus Stand.

A decision to this effect was taken in a meeting held under chairmanship of Chief Secretary Bijay Kumar Patnaik at the State Secretariat on Wednesday.

After the meeting, the Chief Secretary said to the reporters that while ARSS Infrastructure Project Limited has been given responsibility to develop two bus stands of Bhubaneswar, Cuttack, another company PK Behera Construction Private Limited will develop Dhenkanal Bus Stand.

The Development works would be complete by December, 2012. “An MoU has already been signed with the two companies and concessional agreements would be signed soon,” Patnaik informed, adding that the construction work would begin in two months time and the projects would be complete in two years.

Regarding conditions of MoU with the companies, Patanik said the two companies have been asked to use 60 per cent of each of bus stands for bus terminal and 40 per cent as market complex. The lands would be given on lease basis and the company would hand over the terminal areas to the Government after completion of 15 years and market complex area after 90 years, he informed.

The companies would be given 14 acres of land for Baramunda Bus Stand, 4.6 acres of land for Badambadi Bus Stand and 5 acres of land for Dhenkanal Bus Stand. ARSS would give concessional fee of Rs 56 crore and 17.21 crore for Baramunda and Badambadi respectively and PK Behera Construction Private Limited would give 1.26 crore for Dhenkanal Bus Stand.