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$150-b opportunity in infrastructure: Montek
Our Bureau
Hyderabad
,
May 4
Mr Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission, has said that the biggest weakness in India's economy is infrastructure.
Addressing the `Advantage India' session on the $150-billion opportunity in infrastructure at the ADB meeting here on Thursday, he said that the biggest challenge in infrastructure development was evolving policies that support large capacity addition.
It was important to formulate world-class, yet cost effective projects that were commercially sustainable and affordable.
Policy support
Listing opportunities and policy support in various infrastructure sectors, he said that the country's target is to develop 40,000 km highways by 2012 at a cost of $50 billion. Of this, 20,000 km would be taken up through BOT (build, operate and transfer) route.
"We have approved PPP (public-private partnerships) for a length of 19,600 km, this included 1,000 km of expressways," he said.
Subsidy
In order to encourage private investments, the Government had ratified a model concession agreement for PPPs. "All future BOTs will be decided using this model. We recognised the fact that it may be difficult for investors to make returns. So, the model seeks to offer up to 40 per cent of capital subsidy," he said.
A model concession agreement was being finalised, which might pave the way for PPPs for 54 new berths.
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