Tweet
Pvt bidders cold to NH projects
The Centre’s keenness to rope in private players for development and construction of National Highways (BOT projects) has not found enthusiastic takers, raising alarm bells for the Government. Till last year similar projects had got overwhelming response from private bidders.
Lack of availability of finance due to sectoral ceiling fixed by the RBI for the bidders, and cumbersome land acquisition and environmental clearance process, are the main reasons behind private sector’s disinterest. The PMO has now directed the Highways Ministry to expedite things to meet the target of construction of 20 km of road per day.
“Infrastructure developers are finding it difficult to raise equity. A meeting in this regard is scheduled in the coming week as how to break the cap of sector ceiling from banks financing the NH projects. When there are no bidders in a particular project then what can even the banks do. The matter is being sorted out and that is why to put the projects on tracks we got the sanction of EPC model,” Minister of Road Transport and Highways CP Joshi told The Pioneer.
The Road Transport and Highways Ministry has claimed to have initiated a number of steps to minimise procedural bottlenecks and delays. MoRTH has taken up the matter with all the State Governments emphasising the need to streamline the process of land acquisition and utility shifting etc, by constituting high level committees under the chairmanship of the Chief Secretary of the respective States.
Further, a Committee of Secretaries has been constituted under Cabinet Secretary to address inter-ministerial and Centre-State issues such as land acquisition, utility shifting, environment approvals and clearance of Railways Over Bridges (ROBs). “Apart from the above, Confederation of Indian Industry (CII)-MoRTH Joint Task Force on Roads and Highways also meets regularly to find out ways to minimise procedural bottlenecks and delays. Regular interactions are held with the contractors, developers and financial institutions to address and resolve their concerns,” said a MoRTH official.
With funding process affected severely, the Government recently allowed foreign direct investment up to 100 per cent in road sector under the automatic route in construction and maintenance of roads and highways offered on BOT basis including collection of toll.
However, the Centre does not maintain any conclusive statistical data separately for foreign investment in road sector.
Delegations of the MoRTH have also conducted road shows to explain Government policy and guidelines to foreign investors. The Government has also announced the setting up of Infrastructure Debt Funds (IDFs) to provide long-term, low-cost debt for infrastructure projects. The funds would allow infrastructure developer’s access to domestic and offshore investors on a long-term basis. Several foreign companies have successfully participated in the award process for developing highways, claimed a top MoRTH official.
The Centre’s keenness to rope in private players for development and construction of National Highways (BOT projects) has not found enthusiastic takers, raising alarm bells for the Government. Till last year similar projects had got overwhelming response from private bidders.
Lack of availability of finance due to sectoral ceiling fixed by the RBI for the bidders, and cumbersome land acquisition and environmental clearance process, are the main reasons behind private sector’s disinterest. The PMO has now directed the Highways Ministry to expedite things to meet the target of construction of 20 km of road per day.
“Infrastructure developers are finding it difficult to raise equity. A meeting in this regard is scheduled in the coming week as how to break the cap of sector ceiling from banks financing the NH projects. When there are no bidders in a particular project then what can even the banks do. The matter is being sorted out and that is why to put the projects on tracks we got the sanction of EPC model,” Minister of Road Transport and Highways CP Joshi told The Pioneer.
The Road Transport and Highways Ministry has claimed to have initiated a number of steps to minimise procedural bottlenecks and delays. MoRTH has taken up the matter with all the State Governments emphasising the need to streamline the process of land acquisition and utility shifting etc, by constituting high level committees under the chairmanship of the Chief Secretary of the respective States.
Further, a Committee of Secretaries has been constituted under Cabinet Secretary to address inter-ministerial and Centre-State issues such as land acquisition, utility shifting, environment approvals and clearance of Railways Over Bridges (ROBs). “Apart from the above, Confederation of Indian Industry (CII)-MoRTH Joint Task Force on Roads and Highways also meets regularly to find out ways to minimise procedural bottlenecks and delays. Regular interactions are held with the contractors, developers and financial institutions to address and resolve their concerns,” said a MoRTH official.
With funding process affected severely, the Government recently allowed foreign direct investment up to 100 per cent in road sector under the automatic route in construction and maintenance of roads and highways offered on BOT basis including collection of toll.
However, the Centre does not maintain any conclusive statistical data separately for foreign investment in road sector.
Delegations of the MoRTH have also conducted road shows to explain Government policy and guidelines to foreign investors. The Government has also announced the setting up of Infrastructure Debt Funds (IDFs) to provide long-term, low-cost debt for infrastructure projects. The funds would allow infrastructure developer’s access to domestic and offshore investors on a long-term basis. Several foreign companies have successfully participated in the award process for developing highways, claimed a top MoRTH official.
