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The Centre is readying nearly 500 road projects by giving approvals, and the target is to bring in Rs 5 lakh crore worth of projects in five years, said Nitin Gadkari, Union Minister of Roadways, Highways and Shipping.
He said the government was ready to approve Rs 50,000 crore worth of projects for Tamil Nadu, provided the state government co-operates on land acquisition and other procedures.
Speaking to industry representatives, he said, “We are clearing various hurdles being faced by many pending projects, from various departments, and we have found a way to clear Rs 1.20 lakh crore worth of projects of the Rs 1.80 lakh crore of projects stuck for various reasons. Now, 500 projects will be ready on our shelf.”
He added that the government was also looking at low interest foreign loans with a better internal rate of return (IRR). “We are planning to go for loans from abroad. We had many detailed discussions with some countries, and they have a lot of money and their interest cost is much lesser. So we are going to develop a formula by which there will be a cap and by which we can list it. We should get the loans at 3-4 per cent. With a 4 per cent interest and the present value, the IRR will be 13-14 per cent, which is good.”
He said the target was to be met within five years, and the government wanted to build roads worth Rs 5 trillion and was preparing the details, including the detailed project report.
However, land acquisition is a major problem and the government is working on bringing in changes to the Land Acquisition, Rehabilitation and Settlement Act, 2013, without reducing the compensation, but simplifying and making it transparent. The preparation of a DPR is also important and the government has taken steps to improve efficiency of the system. Companies are looking to use concrete instead of bitumen, and JSW Cements has agreed to provide slack cement at Rs 120 per bag, according to him.
Commenting on the projects in Tamil Nadu, he said he had asked the state government to co-operate in implementing more projects. “I can give you Rs 50,000 crore worth of projects, provided the state government supports,” he said. Of the 12 projects being implemented in Tamil Nadu, two are stuck over disputes in courts and it is causing a huge loss to the government.
He said the Colachel Port, a small port in Kanyakumari, has the potential to grow as its draft could be 20 metre. “We are giving a proposal to the state government as minor ports are under the purview of the state government and we can develop it if the Tamil Nadu government gives permission,” he said. Tamil Nadu needs another four to five ports, he added.
Speaking of the congestion at Chennai Port, he said it was difficult to operate a port, which is inside the city and one has to look at options like shifting the port or at least some of its operations to decongest it. He asked industry to form a committee and submit suggestions on what could be the solution for the issues in the Chennai Port Trust.
On Monday, Gadkari laid the foundation for the container terminal project of Adani Group at the Kamarajar Port, Ennore. The container terminal, with 1.40 million TEU capacity, is expected to come up with an investment of Rs 1,270 crore.
