New Delhi: After a rough patch, highways building through the Public-Private Partnership (PPP) mode is set to take a leap with Central government planning to launch 100 such projects next year, Union minister Nitin Gadkari said on Sunday.
Asking investors to change their perception about PPP, the road transport and highways minister said that all problems pertaining to the mode have been addressed and this year seven projects worth Rs 11,500 crore have already been awarded in contrast to a nil last year.
“Under the PPP model, we will give you on platter projects with land acquisition and environment clearances. Forty per cent cost will be borne by us while 60 per cent will be funded by you. Of the 60 per cent, banks will provide 30 per cent of the requirement,” Mr Gadkari said at India PPP summit by FICCI.
He said that investors need not worry at all and just “change their perception about PPP” as in the present hybrid model, even the toll collection will be done by the government.
The minister said that the government was planning to float tenders for about 18 projects by December. He said that 95 per cent problems pertaining to PPP projects have been addressed and of the 283 projects, 44 were terminated.
About Delhi-Jaipur Highway, he said the Rs 1,700 crore project will be completed by December as 85 per cent of the long-delayed project is completed while problems related to Delhi-Haridwar and Ranchi-Jamshedpur highways were being addressed. He said that the highways ministry has no dearth of funds but was lacking on two fronts — shortage of contractors and capacity constraints.
Expressing commitment to transform highways network, he said that PM Narendra Modi will do “bhoomi pujan” for access-controlled Rs 7,000 crore eastern highway project to decongest Delhi soon while Delhi-Meerut highway will be developed as a green expressway with 14 lanes on NH-24.
The national highways length would be increased to 1.5 lakh km from 1 lakh km at present as it does not match up to the 10 per cent annual growth in vehicles, he said. He added that apart from Buddha circuit, 1,000 km of highways will be constructed to link ‘char dhams’’.
Besides, one per cent of the highways construction cost will be set aside for plantation along the roads, which in turn would generate five lakh employment. He added that government also plans to build a number of expressways including Delhi-Mumbai, Mumbai-Nagpur, Delhi-Ludhiana and Bengaluru-Chennai.
The Minister said that both shipping and highways would contribute at least 2 per cent to the country’s GDP. Also, he added that all the 12 major ports and SCI, DCI and Cochin Shipyard would post a profit of around Rs 6,000 crore this year.
