National highways to be opened up

NEW DELHI, DEC 23: The whole of national highway is being opened up for private sector participation, said Yogendra Narain, secretary, Unio...

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NEW DELHI, DEC 23: The whole of national highway is being opened up for private sector participation, said Yogendra Narain, secretary, Union ministry of surface transport.

Narain was speaking at the National Conference on Transport Infrastructure organised by the Confederation of Indian Industry (CII) on Tuesday.

Elaborating further, Narain said that the entire 35,000 km stretch of the national highway would be opened up for four-laning thereby creating continuous business opportunities for contractors and BOT operators over the next 10-15 years.

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On the reforms that are on the cards, Narain said that the corporatisation of existing ports was first on the agenda. He further said that the new port at Ennore near Chennai was already being corporatised in which the government would gradually divest its stake over a period of time.

Narain also said that the ministry has taken steps with regard to decongestion of the ports by urging the respective Port Trust chairmen to reduce the waiting time for cargo at their ports.

He also expressed his keenness to promote joint ventures in road sectors. Narain said that foreign investment in terms of joint ventures with domestic companies will bring in better technology and expertise to the country.In this regard he added that massive investment from a number of Malaysian companies is expected in this sector. Already four contracts are being awarded to Malaysian companies, in joint venture with domestic companies.

He said that the ministry has initiated programmes for two new expressways, on the lines of those existing in the US- one linking Mumbai and Baroda and the other linking Kanpur with Agra. The union finance ministry has promised adequate money for purchasing land for these projects, he added.

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On the inland waterways, Narain said that a separate and comprehensive policy is being prepared by the ministry. He added that various stretches of national waterways will also be opened for private sector participation. On the shipping sector he stated that there is a need for a national shipping transport policy.

On the bankability of concessional agreements in the road sector, Narain mentioned that a draft agreement has been prepared by the ministry which is bankable and has internationally accepted force de-majeure clauses. The document would be used for the Mumbai-Baroda National Expressway, he added.