India's infra push: Advisor for asset monetisation, lucrative plans for pvt players, says Nitin Gadkari

To furr give a push to country's infrastructure, big plans are lined up that include roping in an advisor for asset monetisation and offering attractive schemes to private players, including identified 3,000 kms of projects, Union Minister Nitin Gadkari said.

Plans are also afoot to make vehicle scrapping policy more attractive, besides expediting land acquisition process to create a network of expressways and highways.

"We are planning to rope in an Indian expert with experience in global ecomy for advising NHAI on asset monetisation," Road Transport and Highways Minister Nitin Gadkari told PTI in an interview.

advisor, apart from asset monetisation, will guide National Highways Authority of India (NHAI) on invative ways to meet funding requirements, he said.

After huge success of maiden bundle of nine highway projects under TOT (toll, operate and transfer) totalling 681 kms of roads in Andhra Pradesh and Gujarat in 2018 that fetched NHAI Rs 9,681 crore, second tranche of 586 kms was cancelled in February 2019 due to lukewarm response.

TOT is a model for monetising operational national highway projects. investor makes a lumpsum payment in return for long-term toll collection rights backed by a sound tolling system. concession period is 30 years.

Up to 49 per cent divestment is allowed till two years of concession period while up to 10 per cent change in ownership is allowed after two years.

government w plans to offer 550 km of roads under TOT.

Apart from asset monetisation, Gadkari said government will attract private players into highways building and has already identified 3,000 kms to be bid out under build operate and transfer (BOT) mode.

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"For private sector revival in highways building, we have identified 3,000 kms of highways that have 17,000 pcu (passenger car unit) traffic. We plan to bid this out under BOT mode," minister said.

Ratings ncy Crisil in a recent report said to reinvigorate private sector interest, government has resorted to HAM (hybrid annuity mode) and BOT which will ensure putting public-private partnership (PPP) projects in roads and highways sector back on track.

On vehicle scrapping policy, minister said it would be made more attractive with suggestions from Finance Ministry and PMO.

policy aims to pave way for mandatory scrapping of old vehicles from April 1, 2020.

In May 2016, government had floated a draft Voluntary Vehicle Fleet Modernisation Programme (V-VMP) that proposed to take 28 million decade-old vehicles off road.

A committee of secretaries (CoS) had recommended to ministry redesigning of scheme for greater participation of states with partial support from Centre.

CoS suggested that "scheme may dovetail a calibrated and phased regulatory approach for capping life of vehicles toger with stricter implementation of emission rms" and accordingly a revised consultation paper got in-principle d from PMO.

About or plans, minister said land acquisition process has been expedited and it has seen a three-fold jump.

"This will facilitate our plans of fast-tracking projects besides building 22 green expressways," he said.

are also plans to create a highways grid on par with power grid, he said.

He said Delhi-Meerut Expressway is likely to be completed in next two months.

minister has said re are plans to take up work worth Rs 15 lakh crore in highways sector over next five years. 

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