Prime Minister Manmohan Singh on Monday called for complete transparency in awarding highway projects to eliminate the possibility of favouritism or crony capitalism.
Road transport and highways minister C P Joshi said the National Highways Authority of India would award contracts for construction of 7,300 km of highways envisaging private investments of about Rs 50,000 crore by the end of the current financial year.
The PM said the high level of investment in infrastructure was one of the important preconditions for achieving nine per cent economic growth target during the 12th Plan, beginning April 2012. The growth target for the current Plan period is 8.2 per cent.
The government plans to invest $1 trillion in infrastructure projects during the 12th Plan. Of this, 50 per cent is expected to come from the private sector. The finance ministry is taking the initiative to set up the Infrastructure Debt Fund to enhance the flow of the much-needed long-term debt in infrastructure projects. “There are areas where private investments can be invited, based on affordable user charges with some capital subsidy as necessary,” he said, adding, “I have often said PPP is private profit in service of public at large.”
Singh said the government had been successful in attracting large volumes of private investments in the road sector. More than 4,800 km of contracts were awarded in 2010-11. The road transport and highways ministry was well poised to award 7,300 km this year, to fulfil the government’s resolve to build 20 km a day, he said.
Also Read
The national highways, which have a length of over 71,000 km, serve as the arterial network of the country. However, the flagship National Highways Development Programme has only addressed about 25,000 km so far. In the recent meeting of the full Planning Commission, the government had endorsed the proposal of the road ministry to take up a large programme for developing national highways in remote areas.
At present, there are about 20,000 km of national highways with a single lane. “A time-bound programme for widening these roads to two lanes would be taken up through turnkey contracts that would ensure speedy and cost-effective outcomes,” said the prime minister.
Referring to the role of state governments in creating road infrastructure, Singh urged them to “formulate their respective state highway development programmes for a coordinated development of all roads in respective states”.
Joshi said the Planning Commission should work in close cooperation with state governments to ensure that state highways become world class. He further said states have so far approved 77 projects under the PPP mode for construction 7,801 km state highways. PPP projects have been able attract investments of Rs 21,000 in the first four months ending July 2011.