The original proposal by Tidco was to hold 11 per cent equity in the petrochem park project. Following recommendations of its consultants PriceWaterhouse, Tidco has chosen an alternative funding route by seeking equity from all those investors wanting to set up industrial units in the park.

The idea is that investors coming into the park will be using common facilities like roads, water supply, effluent treatment and sea-water for coolants for which the consultants has suggested Tidco charge some lease rentals.

Tidco will do this by floating a holding company with a total equity of Rs 1 crore in which besides Tidco other investors setting up units in the park and the EPC, O&M and marketingagency as developers will also contribute. This holding company will give the concession to the EPC and O&M contractors and develop the park by collecting lease rentals from those coming to set up units in the park and use common facilities over a long period.

The receivables from the lease rental collection will be used for maintenance of the park project and the holding company will have a right to supervise the O&M contractor charges without itself contributing anything in terms of investments.

The equity structuring being planned by Tidco is unique and easily among the most innovative being attempted by any government agency charged with developmental work, according to a top Tidco source.