Minister of staet of surface transport Debendra Pradhan yesterday said the development of the national highway sector of fered a large investment opportunity to the private sector.
At a conference on `Development of Roads in Northern Region' organised by PHD CCI, Pradhan said legislative amanedments have been put in place and guidelines have been issued for the private sector participation.
Pradhan said to attract private investment in highways, two model concession agreements had been finalised, one each for project costing above and below Rs 100 crore.
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A number of tax and fiscal incentives have also been offered to promoters and investors including financial institutions involved in fiancning road projects, he added.
Pradhan said response from the private sector was encouraging. So far 20 projects worth Rs 1,000 crore have been awarded on BOT basis.s He said they were also trying to introduce annutiy and shadow tolling for highway projects.
Contruction of new expressway will also be taken up with private sector participation wherever they are commercially and financial viable, Pradhan said.
He also talked bout the increasing role of the Naiontal Capital Region Planning Board, which formulate infrastructure development project in consultations with its member state of UP, Haryana, Delhi and Rajasthan.
The board is planning a few expressways between Kundli and Ghaziabad, Ghaziabad and Meerut besides Faridabad, Nodia and Ghaziabad, around Delhi to reduce tariff congestionin the capital.
Speaking on the occasion, National Highway Authority of India member Hardeepak Singh said the investment required in the road sector was too large for the private sector to enter alone.
So, the larger investment must come from government and privatisation can be intorudced in parts.