Minister of state for surface transport Debendra Pradhan yesterday said the development of the national highway sector offered 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 amendments 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 projects costing above and below Rs 100 crore.
More From This Section
A number of tax and fiscal incentives have also been offered to promoters and investors including financial institutions involved in financing 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. He said they were also trying to introduce annuity and shadow tolling for highway projects.
Construction of new expressways will also be taken up with private sector participation wherever they are commercially and financially viable, Pradhan said.
He also talked about the increasing role of the National Capital Region Planning Board, which formulates infrastructure development project in consultation with its member states of UP, Haryana, Delhi and Rajasthan.
The board is planning a few expressways between Kundli and Ghaziabad, Ghaziabad and Meerut besides Faridabad, Noida and Ghaziabad, around Delhi to reduce traffic congestion in the capital.
Speaking on the occasion, National Highways Authority of India member Hardeepak Singh said the investment required in the road sector was too large for the private sector to enter alone.
Therefore, the larger investment must come from government and privatisation can be introduced in parts. Private sector could play a crucial role in maintenance and upgradation of roads, he added.