100 highway projects on PPP on its way next year: Nitin Gadkari

The government is planning to award 100 highway projects on PPP next year, Union Minister Nitin Gadkari said today.

Asking investors to change their perception about public-private-partnership (PPP), the Road Transport and Highways Minister said 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.

"The government will award 100 projects on PPP mode next year. Under the hybrid model, we will give you on platter projects with land acquisition and environment clearances. 40 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," Gadkari said at India PPP summit by FICCI.

He said 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 adding PPP has received good response this year.

The Minister said the government was planning to float tenders for about 18 projects by December.

He said 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 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 Prime Minister 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, 1000 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 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.

Gadkari said three new ports would be built in Tamil Nadu, West Bengal and Maharashtra.

He said 1,200 roadside amenities will be built besides 5,000 driving centres across the country to check corruption.

NHAI and builders would now solve their disputes amicably instead of going to courts as the PMO also is of the view to solve them through talks, he said.

Road Transport and Highways Secretary Vijay Chhibber said the PPP mode picked up last year after going through a rough patch for three years and this year, the government will award road projects totalling 10,000 km and complete 6,500 km, he said.

Last year, the government awarded projects totalling 8,000 km and completed 4,000 km.

Of the 1 trillion investment in infrastructure as per the 12th Five Year Plan, one-tenth ($95 billion) will go to road sector and private players will contribute about 50 per cent of it, he said.

Chhibber said the government had taken a number of initiatives to address the issues including rescheduling of premium, easy exit policy, one-time fund infusion and 20 amendments in concessionaires agreements.

Also, the government is considering compensation to developers in case the delays in projects were attributable to authorities.

He also said that a Rs 6 cess on diesel and petrol was contributing Rs 50,000 crore to the sector annually.

He said the government is considering monetisation of highways and of the 6,000 km under EPC, 200-300 km will be monetised this year.

(Image credits: Indiatimes)