PPP Infrastructure projectsface a lot of road blocks
The government on Thursday said that the poor performance of the highways sector in the last two years is due to the factors relating to tolling issues, lack of equity with the developers and delays in the land acquisition process.
Road transport and highways minister Nitin Gadkari told the Lok Sabha that the government has identified the bottlenecks in execution of the projects faced by NHAI (The National Highways Authority of India) under the PPP (Public Private Partnership) mode. There are delays caused due to the delay in land acquisition and green nods from the ministries concerned with them.
Lack of equity with the developers and reduced traffic growth are also responsible for the delay in these projects. The latest Land acquisition bill too had made land acquisitions difficult for the government for the infrastructure projects. And the worst thing was that the projects were awarded to the developers without acquiring the required land. And hence at a later stage the projects got stalled as there was no land available to construct the infrastructure.
He also stated that currently the NHAI is executing 158 projects under the PPP mode, which are under various stages of development. Gadkari stated that NHAI has executed 84 projects under the PPP mode, however at present this was not feasible due to the economic slowdown. Lack of suitable empowerment to NHAI and grey areas in the model concession agreement with developers are also detrimental for the PPP mode.
Source- The Financial Express
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