The Hindu Business Line : Govt lines up more highway projects

WHILE the implementation of the National Highway Development Project I & II (NHDP Phase I & II) is in progress, the United Progressive Alliance (UPA) Government is drawing up more highway development projects such as NHDP Phase III and IV and Accelerated North-East Road Development Project involving a total cost of Rs 1,17,200 crore.

The NHDP Phase III (formerly called Pradhan Mantri Bharat Jodo Pariyojana or PMBJP by the previous NDA Government) involves development of 48 projects totalling 10,000 km of roads on a built, operate and transfer (BOT) basis with the Government providing a subsidy to meet the shortfall between anticipated revenue from tolls and loan repayment liabilities of the private operator under the viability gap funding mechanism. The PMBJP was originally announced by the then Finance Minister, Mr Jaswant Singh, in the budget speech for 2003-04 to be implemented by the Ministry of Road Transport & Highways.

Though, the earlier Government had empanelled 97 contractors for executing the projects, it has not being implemented so far due to lack of approval from the Union Cabinet. The Department of Road Transport & Highways under the new Ministry of Shipping, Road Transport & Highways has now forwarded the proposal to the Union Cabinet for clearance after re-christening the project as NHDP Phase III. As per the new plan, the project will be entrusted to the National Highways Authority of India (NHAI) for implementation, Ministry sources told Business Line.

The plan comprise widening select stretches of roads into four lane or to two lane highways with paved shoulders where four lane is not justified immediately. This will connect all state capitals to NHDP Phase I and II (involving the Golden Quadrilateral linking the four metros and the North-South and East-West corridors), stretches having high traffic volumes, connectivity from NHDP to places of tourist importance, heritage sites, places of economic importance, pilgrimage centres and agricultural mandis.

The NHDP Phase III is estimated to cost Rs 55,000 crore (civil works Rs 50,000 crore and land acquisition Rs 5,000 crore). It is expected to be financed through private investments of Rs 30,000 crore while the Government will pitch in with a budgetary support of Rs 25,000 crore (a gross budgetary support of Rs 12,500 crore and external assistance of Rs 12,500 crore).

Under NHDP Phase IV, the Government proposes to develop 41,000 km of roads into two lane highways with paved shoulders at an estimated cost of Rs 55,000 crore. The Phase IV of NHDP is expected to be funded through a fuel cess and market borrowings component of Rs 33,000 crore, budgetary grant of Rs 12,000 crore and external assistance of Rs 10,000 crore.

The project will be entrusted to NHAI for implementation and would be executed from 2005-06 for completion by 2014-15. A Cabinet note in this regard will be circulated shortly by the Department of Road Transport & Highways, the sources disclosed.

The Accelerated North East Road Development Project comprises development of 6396 km of roads at a cost of Rs 7,226 crore. Out of this, 603 km costing Rs 3,340 core are already covered under NHDP Phase III and the balance will be developed through a budgetary support of Rs 3,886 crore. The project to link all state capitals and district head quarters as well as stretches considered critical for the economic development of the NE region will be constructed over a three-year period starting from 2005.

The Ministry also plans to bid out completed highway stretches on a long-term Operation, Maintenance and Transfer (OMT) contracts with modern electronic system of tolling and traffic management.

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