Ministry about to reduce the role of pvt sector in the sector of roads
The National Democratic Alliance or the NDA might have shown its preference towards the private public partnership mode for the sector of infrastructure, but the highway sector seems to be telling something entirely different.
The ministry of road transport and highways would like to see the share of private public partnership mode to be brought down to around 30%. Previously, it was 48% during the peak time. A senior government official has mentioned that one of the most important reasons for little growth in the sector of roads is too much of dependence on the private sector. The private sector shouldn’t be playing an important role in the sector of roads.
While addressing the joint session of the Parliament, President of India Mister Pranab Mukherjee has mentioned that the lack of strong infrastructure is one of the biggest impediments of India. A PPP mechanism which is fast, speedy and investor friendly shall be put in place very soon.
Last year, there was not a single project that the ministry awarded through this mode. While, under the EPC mode, there were around 2,500 kilometres awarded. 20 projects were not awarded by the government. There are now plans being made in order to change the mode of the project itself after approvals have been given. New projects shall begin under government funding.
Source -Manish Taneja
Agenda for the improvement, ministry of road transport and highways, National Democratic Alliance, NDA
