The Centre is envisaging an investment of $80 billion for construction of roads and highways over the next four years with more than half of the money being expected to come from private and foreign investors.
"Over the next four years, we are looking at an investment of $80 billion in construction of roads and highways. Of this, $42 billion is expected from the private sector," Union Road Transport and Highways Minister Kamal Nath today told reporters here.
The government also plans to put up 120 projects, covering 12,000 kms of roads, for bidding in the next 8-10 months, Nath said.
"There are projects under the process of tendering at present. We plan to bid out 12,000 kilometres of roads in the next 8-10 months, which means there will be 120 projects up for bidding. This is likely to bring in an investment of $20 billion," he said.
He said the Centre is also considering a proposal to relax External Commercial Borrowing norms (ECBs).
"We want all inclusive growth. It is just not about mere connectivity. We want to ease the sector up as much as possible and for that ECB norms needs to be relaxed. We are in talks with the Finance Ministry on the matter," Nath said.
He said his ministry was looking to achieve the target of building 20 kms of road per day, which amounts to 7,000 kms of road annually.
"We have so far built 2,000 kms of road and will close this financial year with a total of 3,000 kms," Nath said, adding that construction of 20,000 kms of roads was currently in progress.
He said India is a very attractive destination for foreign investment and the road sector was "very viable and bankable with assured returns".
"We are looking at investments from Dubai and the UAE in the form of debt, equity, insurance as well as pension funds," the minister said.
The government is also working on a competition clause, which ensures maximum bidding from potential investors and, at the same time, prevents cartelisation in the sector, Nath said.
"We are revising the toll policy wherein there will not be any toll levied for local traffic. But the toll will be levied on commercial vehicles going to and from city to city," he added.
Nath said the Centre will also release a book of specification in the next ten days, which would lay down liberal guidelines for use of technology in road construction.
