Govt likely to set up expressway authority

Govt likely to set up expressway authority
Business Standard, July 15, 2009, Page 5

BS Reporter / New Delhi

To build 1,000 km of expressways at an estimated cost of Rs 16,680 crore.

Union Road Transport and Highways Minister Kamal Nath today said the government was considering setting up an authority for expressways on the pattern of the National Highways Authority of India (NHAI) in order to give impetus to infrastructure development in the country.

The government plans to build 1,000 km of expressways at an estimated cost of Rs 16,680 crore, which is likely to be completed by December 2015.

“The government is considering an expressway authority. The new authority will identify routes, technology and schemes for the expressways,” Nath said at the National Highways Development Conclave organised here by the Confederation of Indian Industry (CII).

A road task force, constituting members from the CII, the Union transport ministry and the NHAI, was also formed as a mechanism to address industry concerns.

The forum would meet every month under the leadership of the transport secretary and submit reports to the minister on the progress made.

Nath said he would discuss with the finance ministry on making toll collection a tangible asset, so that banks can offer loan to concessionaires.

Nath also said he would take up the matter of increasing the conflict of interest clause in the RFQ to 10 per cent from 5 per cent and to revamp the dispute restoration board model.

“Dispute restoration has to be revamped. It is a field issue and has to be settled on the field. We have set a committee in the ministry to look into this matter and it is to submit its report in the next two to three weeks,” Nath said.

On generation of funds for the road projects, Nath said the government would look at innovating capital sources and may consider coming up with bankable bonds markets for the long-term funding of road projects.

Planning Commission Deputy Chairman Montek Singh Ahluwalia said: “The development on infrastructure cannot completely rely on budgetary allocation. Therefore, public-private partnership engagements should be leveraged to strengthen the overall scenario and bring in efficient practices. Capacity generation and organisational issues are a big problem in the country and should be dealt with.”