Govt to announce 16 road projects under PPP in Dec; plans to roll out 100 projects next year: Gadkari
Updated: Oct 27, 2015 05:40:06pm
New Delhi, Oct 27 (KNN) The government is set to announce 15-16 road infrastructure projects under the Public-Private Partnership (PPP) mode in December this year and plans to roll out 100 projects next year.
“In the past, PPP was not seen as a feasible proposition but with the amendments in regulations, PPP has emerged as a viable model. But there was a need for capacity building in the government and increase the number of contractors and investors in the sector to fast-track projects in PPP mode,” said Nitin Gadkari, Union Minister for Road Transport, Highways and Shipping, here today at the fourth edition of FICCI’s ‘India PPP Summit’.
Gadkari said that the government has taken decisive action to promote the hybrid model of PPP for encouraging investments by the private sector. According to the new norms, 40% project cost would be funded by the government and the necessary land acquisition and environment clearances would be handed over to the private contractor prior to the commencement of the project.
The private player would need to invest 60% in the project, of which 30% would come from banks and financial institutions. Also, the toll on the infrastructure project would be collected by the government and a fixed annuity with a profit margin would be given to the private partner.
The Minister said that lack of contractors could be attributed to stringent regulatory framework and assured industry that the government was committed to liberalizing regulations without compromising on quality to allow more private investors to enter the sector.
He said the government was revamping the entire transport sector by giving a facelift to rail linkages, inland waterways, and ports. The government was working towards developing dry and satellite ports as well to provide better connectivity for moving cargo efficiently.
Speaking about the issues related to infrastructure sector, Gadkari said that the government was trying to resolve the litigation issues with mutual consent to save time, money and move the projects ahead rapidly. He added that to maintain an ecological balance, a Green Highways Policy has been evolved to promote greening of highway corridors with participation of the community, farmers, private sector, NGOs, and government institutions. One per cent of the total project cost as plantation fund will be kept in a separate account with NHAI.
Vijay Chhibber, Secretary, Ministry of Road Transport and Highways, in his address, pointed out that 90 per cent of passengers and 70 per cent of all freight in the country was transported by road and this skewed overdependence on the road sector was getting enlarged. The one corrective measure that needs to be done is to seriously look at inland waterways as a means of transportation, he added.
He said that the government proposes to award 12,000 kms of national highway construction next year, of which it hopes to complete 7000-7500 kms in the next three years. This year it awarded 10000 kms, of which 6000 kms are getting completed.
The government was also proposing monetization of highway projects; he said and added that three or four projects would be tested out this year under the hybrid PPP model. Subject to approvals, the developers would also be entitled to compensation if delays were attributed to the authorities for languishing projects, he said.
As for other opportunities under the PPP project mode, Chhibber said wayside amenities were being rolled out, while on the transport side, steps were afoot to set up training facilities, automated vehicle testing centres and up gradation of bus stations in prime locations in cities. (KNN Bureau)
“In the past, PPP was not seen as a feasible proposition but with the amendments in regulations, PPP has emerged as a viable model. But there was a need for capacity building in the government and increase the number of contractors and investors in the sector to fast-track projects in PPP mode,” said Nitin Gadkari, Union Minister for Road Transport, Highways and Shipping, here today at the fourth edition of FICCI’s ‘India PPP Summit’.
Gadkari said that the government has taken decisive action to promote the hybrid model of PPP for encouraging investments by the private sector. According to the new norms, 40% project cost would be funded by the government and the necessary land acquisition and environment clearances would be handed over to the private contractor prior to the commencement of the project.
The private player would need to invest 60% in the project, of which 30% would come from banks and financial institutions. Also, the toll on the infrastructure project would be collected by the government and a fixed annuity with a profit margin would be given to the private partner.
The Minister said that lack of contractors could be attributed to stringent regulatory framework and assured industry that the government was committed to liberalizing regulations without compromising on quality to allow more private investors to enter the sector.
He said the government was revamping the entire transport sector by giving a facelift to rail linkages, inland waterways, and ports. The government was working towards developing dry and satellite ports as well to provide better connectivity for moving cargo efficiently.
Speaking about the issues related to infrastructure sector, Gadkari said that the government was trying to resolve the litigation issues with mutual consent to save time, money and move the projects ahead rapidly. He added that to maintain an ecological balance, a Green Highways Policy has been evolved to promote greening of highway corridors with participation of the community, farmers, private sector, NGOs, and government institutions. One per cent of the total project cost as plantation fund will be kept in a separate account with NHAI.
Vijay Chhibber, Secretary, Ministry of Road Transport and Highways, in his address, pointed out that 90 per cent of passengers and 70 per cent of all freight in the country was transported by road and this skewed overdependence on the road sector was getting enlarged. The one corrective measure that needs to be done is to seriously look at inland waterways as a means of transportation, he added.
He said that the government proposes to award 12,000 kms of national highway construction next year, of which it hopes to complete 7000-7500 kms in the next three years. This year it awarded 10000 kms, of which 6000 kms are getting completed.
The government was also proposing monetization of highway projects; he said and added that three or four projects would be tested out this year under the hybrid PPP model. Subject to approvals, the developers would also be entitled to compensation if delays were attributed to the authorities for languishing projects, he said.
As for other opportunities under the PPP project mode, Chhibber said wayside amenities were being rolled out, while on the transport side, steps were afoot to set up training facilities, automated vehicle testing centres and up gradation of bus stations in prime locations in cities. (KNN Bureau)
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