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The Big Interview with Mr Kamal Nath

by Niranjan Mudholkar on Sep 17, 2009


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We will refine the system: Shri Kamal Nath (All photographs for 'The Big Interview' by Amit Dhir - Both print & Online)
We will refine the system: Shri Kamal Nath (All photographs for 'The Big Interview' by Amit Dhir - Both print & Online)
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The stakeholders in the road construction industry face various challenges. The key of these include land acquisition, multi-level administrative as well as environmental clearances and lack of finances at feasible rates. How will your ministry tackle each of these issues?
We do understand and are aware that the stake holders in the construction industry face many challenges. To meet issues related to land acquisition NHAI is creating 150 special land acquisition units to provide the necessary support to state level authorities to conclude land acquisition.
As far as environmental clearance issues are concerned this needs to be taken up at the Ministerial level and one of the suggestions which we have put forth is the creation of “Group of Ministers” structure, which when created, can discuss such issues which can be better dealt with at that level.
Coming to the lack of finance for highway projects, wherever technical issues impede such availability, such as related to the security structure, suitable modifications in MCA can be expected to solve this issue.
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Dear sir Your interview with Honble Minister for road transport & highways clearly shows govt intention of making NH in

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Regarding availability of finance itself, it does not appear to be an issue of any serious import since the credit out-go from the banking industry during this year appears to be well above the levels seen during the last year. We have no complaints related to lack of finance.

There have been reports in some media that the Ministry of Finance has not approved your proposal of setting up the ‘Road Finance Corporation?
These reports are wrong. It is a very important and complex matter and hence will take some time. I can only say that it is still under consideration.

Use of advanced technology and implementation of modern management concepts like project management are also critical to ensure faster implementation of infra projects. Will your ministry take some efforts to encourage the industry on such aspects?
As it can be seen, use of advance technology and import of machinery in application thereof is freely permitted by the Government. Projects Implementation in BOT mode, which is the predominant mode right now, is generally with the assumption that private sector efficiencies can be better harnessed in the PPP mode. Hence, there is no special effort which the government is required to take in this regard.
We would promote use of appropriate technology and standards so as to improve the quality of feasibility reports and to ensure timely taking up of projects and ensure time management so as to avoid cost over runs.

When it comes to the collection of revenues, we are still decades behind despite the fact that this is how the government gets the money back. When will the government have any system in place or a model to ensure there is proper collection, maintenance, operations and accounting of the road tolls?
We agree that we need to have an integrated system for toll collection which would enable the users to pass through toll plazas without actually having to stop and wait to pay toll in cash, if a pre-paid card system can be in place, applicable across India. Such systems are available abroad and it enables the users to pass through toll plazas, the system automatically registering their passage and debiting their account, which will ultimately be paid through an electronic clearing system. Each operator gets their revenue directly through a centralised system.
In India most of toll collection now is manually affected and the possibility of leakages is quite high. We are hence in the process of developing an integrated system which will enable us to electronically control toll collection and distribution.
We are also looking into the possibility of separate specialised world class tolling companies to handle tolling. We are getting good response and there are various companies who have shown interest in it.

Most Indian roads are not suitable for multi-axle trucks. As a result, we end up spending more on the maintenance, repairs and re-construction of these roads. Is there a mechanism in place to take care of this?
In terms of life cycle cost of highways, it is a proved fact that if the construction cost is kept low compromising on quality, then the maintenance cost will be high. That apart, the overall cost on the economy of any sub-standard construction and maintenance will be high. It needs be said that most of the highways developed under NHDP are suitable for multi-axle trucks, though this may not be true for other Indian roads.
There is only one solution to this issue, that all roads are developed giving due consideration to quality, and particularly for national highways, which carry 70% of the freight, that these are developed with no compromise on quality in such a way that it’s life cycle cost is kept low rather than the initial construction cost.

It will be critical to integrate the rail-freight corridor (connecting Delhi-Mumbai-Kolkata) with the road network. What steps are being taken to ensure this?
The Golden Quadrilateral (GQ) connecting the four Metros in India is generally in alignment with the rail network and hence we do not see any issues in integrating the rail freight corridor with the existing road network.

During your tenure as the Commerce Minister, you kept India’s flag flying high on the global trade front without compromising the livelihood of millions of farmers. One of the biggest drawbacks of our economy is our inadequate rural infrastructure. How will you address this?
Highways are all about connecting people. One of the aims of our government is to have inclusive growth and this will be possible if we can include the rural masses as true participants in the economic success of India. As it can be seen the GQ and the NS-EW Corridor provides the backbone chain to the highway network, and all other economic centres of our country will be connected to either of these. Ultimately, every village will be connected through the rural road network.
Road development will be an optimum mix of roads that serve the economically advanced areas as well as the backward areas. My challenge is to ensure inclusive growth. We also want to ensure that important ports, airports, tourist places, religious places to be well connected with quality roads. All state capitals will be connected to four laned the National Highways.
In our opinion, once this network is ready then connectivity will ensure higher living standards through better employment which will be available to the rural masses.

Any special message to our readers?
The road sector is the engine of growth of the country. The success of this sector depends heavily on the support of all the stake holders who matter.
To bring the road sector to new heights there is a need to build the confidence among the stake holders i.e. developers, contractors, consultants, concessionaires, investors, etc.
During several rounds of meetings with the stake holders, I believe that there are certain concerns of the stake holders which need to be addressed.
As a Minister, I am committed to their concerns. I am hopeful that the system will be refined which would certainly boost the confidence of the investors.




Readers' Comments


(Nov 18, 2009)
Jaipur,
National highways
Dear sir Your interview with Honble Minister for road transport & highways clearly shows govt intention of making NH in a proper & systametic way


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