The PHD Chamber of Commerce and Industry has stressed the importance of increasing the role of the private sector in expanding national highways and expressways.
In a note to the government yesterday, PHDCCI has also urged the government to reconsider certain aspects of its road development policy and offer packages which are financially viable and attractive. However the PHDCCI felt that a number of financial and legal issues will have to be addressed in the initial stage so that private sector participation in the National Highway projects can be successful. Also, the government lacks a suitable profitability evaluating structure for projects offered to the private sector. Moreover there are no guarantees against risks born of the entrepreneurs' fears of audit and accounting.
The PHDCCI has also noted that none of the proposed expressway sections are viable on a stand-alone basis. Two-lane sections in many high density corridors can be considered for four-laning, the note said. Also the developer's anticipated rate of return on the projects suffers because of the users' reluctance to pay toll. Following the success in attracting private funding in small road projects, the Chamber has suggested adoption of appropriate measures to increase their participation.