Union Highways Minister Nitin Gadkari unveils multi-crore schemes and projects promoting India's Infrastructure

In a bid to gear up and enhance country's infrastructure, major plans are underway which include roping in an advisor for asset monetization and offering attractive schemes to private players, anunced Union Minister for Road Transport & Highways, Micro, Small & Medium Enterprises Nitin Gadkari on Sunday.

"We are planning to rope in an Indian expert with experience in global ecomy for advising NHAI on asset monetization," said Gadkari.

Or plans are set up to make vehicle scrapping policy more attractive, besides expediting land acquisition process which will ultimately create a vast network of expressways and highways, said Gadkari, adding:

“ chosen advisor with his global ecomy expertise will guide National Highways Authority of India (NHAI) on invative ways hence providing better insights to keep up with funding requirements.”

India's Infra Push: Advisor For Asset Monetisation, Lucrative Plans For Pvt Players, Says Nitin Gadkari

huge success of first bundle of nine highway projects under TOT (toll,operate and transfer) totalling over 681 kms of roads in Andhra Pradesh and Gujarat fetched NHAI Rs 9.681 crores last year. However, next tranche which covered 586 kms was canceled in February 2019 due to a moderate response. TOT is a model followed to monetize operational national highway projects. Investors will make a lumpsum payment in return for long-term sustainable toll fund collection rights. se rights will be backed by a sound tolling system with a concession period for up to three decades.

A divestment of about 49 percent is allowed for two years during concession period. In addition, a 10 percent change in ownership can apply after completion of two years of contract. Under TOT, government has planned to offer 550 km of roads. While assets are being monetized, Gadkari also added that private contractors will be opted for building over 3,000 kms of road under Build, Operate and Transfer (BOT) mode:

"For private sector revival in building highways, 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,"

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In a report, rating ncy CRISIL recommended strengning private sectors. government has resorted to HAM (Hybrid Annuity Model) and BOT which ensure a mutual public-private partnership (PPP) for roads and highways projects.

Talking about vehicle scrapping policy, Gadkari said it would be better to have inputs and suggestions from Finance Ministry and Prime Minister. policy will make scrapping of old vehicles mandatory from April 1, 2020.

In May 2016, government had floated a draft Voluntary Vehicle Fleet Modernization Programme (V-VMP) that proposed to take 28 million decade-old vehicles off road. A committee of secretaries (CoS) had recommended- redesigning of scheme to ministry, for greater participation of states with partial support from Centre.

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CoS got a revised consultation paper and a d from PMO. It furr stated that:

" scheme may dovetail a calibrated and phased regulatory approach for capping life of vehicles toger with stricter implementation of emission rms"

minister also added that land acquisition process has been expedited and it has seen a three-fold jump saying that it will facilitate Centre's plans of fast-tracking projects besides building 22 green expressways.

He also said that re are plans being undertaken to create a highways grid on par with power grid saying that Delhi-Meerut Expressway is likely to be completed in next two months. minister has said that re are plans to take up projects worth Rs 15 lakh crore in highways sector over next five years.