New Delhi: After a rough patch, highways building through PPP mode is set to take a leap with government planning to launch 100 such projects next year, Union Minister Nitin Gadkari said on Monday.
Asking investors to change their perception about pubic-private-partnership (PPP), the Road Transport and Highways Minister said all problems pertaining to the mode have been addressed and this year seven projects worth Rs 11,500 crore have already been awarded in contrast to a nil last year.
“The government will award 100 projects on PPP mode next year. Under the hybrid model, we will give you on platter projects with land acquisition and environment clearances.
40% cost will be borne by us while 60% will be funded by you. Of the 60% banks will provide 30% of the requirement,” Gadkari said at India PPP summit by FICCI.
He said investors need not worry at all and just “change their perception about PPP” as in the present hybrid model even the toll collection will be done by the government adding PPP has received good response this year.
The Minister said the government was planning to float tenders for about 18 projects by December.
He said 95% problems pertaining to PPP projects have been addressed and of the 283 projects, 44 were terminated.
About Delhi-Jaipur Highway, he said the Rs 1,700 crore project will be completed by December as 85% of the long-delayed project is completed while problems related to Delhi-Haridwar and Ranchi-Jamshedpur highways were being addressed.
He said highways ministry has no dearth of funds but was lacking on two fronts – shortage of contractors and capacity constraints.
Expressing commitment to transform highways network, he said Prime Minister Narendra Modi will do “bhoomi pujan” for access-controlled Rs 7,000 crore eastern highway project to decongest Delhi soon while Delhi-Meerut highway will be developed as a green expressway with 14 lanes on NH-24.
The national highways length would be increased to 1.5 lakh km from 1 lakh km at present as it does not match up to the 10% annual growth in vehicles, he said.
He added that apart from Buddha circuit, 1000 km of highways will be constructed to link ‘char dhams’. Besides, 1% of the highways construction cost will be set aside for plantation along the roads, which in turn would generate five lakh employment.
He added that government also plans to build a number of expressways including Delhi-Mumbai, Mumbai-Nagpur, Delhi-Ludhiana and Bengaluru-Chennai.
The Minister said both shipping and highways would contribute at least 2% to the country’s GDP.
Also, he added that all the 12 major ports and SCI, DCI and Cochin Shipyard would post a profit of around Rs 6,000 crore this year.