'Highways have investment potential'

India's economic performance translated into a whopping $150-billion opportunity but its biggest weakness was infrastructure deficit, Planning Commission Deputy Chairman Montek Singh Ahluwalia said.

Addressing a seminar on "Infrastructure challenges in India" at the ADB annual meeting here today, he said highways held the largest investment potential in the infrastructure sector.

An extent of 40,000 km, including the six-laning of the Golden Quadrilateral and four-laning of the East-West and North-South corridors, would be developed by 2012, he added.

To make these projects viable for investors, the government was extending a 40 per cent capital subsidy, subject to competitive bidding, the Planning Commission deputy chairman said.

Saying that ports needed to add 54 new berths to double their present traffic handling capacity of 400 million tonnes by 2012, he added that though perspective and action plans were being prepared, the estimated investment was around $12 billion.

He further said the railways were setting up dedicated freight corridors with an investment of around $5 billion.

Saying that competition in container train movement had been introduced and 14 licences had been granted to private players, he added, "They hope to operate the first services by 2007."

On airports, Ahluwalia said $9 billion would be needed. The modernisation of the Kolkata and Chennai airports would commence soon, while that of the Delhi and Mumbai airports was on and two greenfield airports were coming up at Hyderabad and Bangalore.

A decision on modernisation of other airports would be taken soon, he said, adding, an airport economic regulatory authority would also be set up.