Govt to award 100 highway projects on PPP next year
The government is planning to award over 100 road projects under the public-private partnership mode in the next financial year.
Road Transport and Highways Minister Nitin Gadkari said the projects will be awarded on the newly conceived hybrid annuity model. “We will give projects on a platter with land acquisition and environment clearances to the investors,” Gadkari said. “It will be a lucrative proposition for them.” The minister did not say how much investment the projects would entail, but said about 40% of the cost will be borne by the government while 60% will be funded by private players. Of the 60%, banks will provide 30% of the requirement.
This year, seven projects worth Rs 11,500 crore have already been awarded.
The government’s target is to bring in private investment worth Rs 75,000 crore in the roads sector during the 12th Plan. That will require some innovative approach as investor interest in the sector has weakened drastically since 2010 due to problems over land acquisition, approvals and public opposition to toll collection.
He said 95% of problems pertaining to PPP projects have been addressed and of the 283 projects, 44 have been terminated. Gadkari said Prime Minister Narendra Modi will soon inaugurate the work on the access-controlled Rs 7,000-crore eastern highway projects to decongest Delhi.