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Tamil Nadu ranks 2nd in road projects under PPP

Maharashtra has the highest share of over 22% with 21 road projects worth Rs 4,800 cr

T E Narasimhan  |  Chennai 

The state of ranks number two with a share of over 20% in total under operation in the public-private partnership (PPP) model as of August, 2012.

According apex industry body with around 11 worth over Rs 4,400 crore, ranks second, of the total 115 worth over Rs 21,600 crore under operation across India, Maharashtra has the highest share of over 22% with 21 worth over Rs 4,800 crore, according to a study titled ‘in Road Sector 2012,’ released by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

With about 28 projects worth over Rs 3,400 crore under operation in the model, Rajasthan ranks third followed by Madhya Pradesh (14 projects worth over Rs 1,800 crore) and Andhra Pradesh (7 projects worth over Rs 1,700 crore) for top five slots in this regard.

“There are about 115 worth over Rs 21,600 crore in the mode under operation, while 219 worth Rs 1.65 lakh crore are under construction and about 98 projects worth over Rs 51,000 crore are under bidding,” said D S Rawat, national secretary general of while releasing the chamber’s study.

He added about eight projects in the roads sector worth Rs 191 crore got reversed to the public, there are about 11 projects worth over Rs 5,200 crore in the expression of interest (EoI) stage and three projects worth about Rs 180 crore got cancelled, said Rawat.

The roads sector in India has the highest number of projects under construction and under bidding in the public-private partnership (PPP) model as of the aforesaid period, according to the

With the highest share of over 33%, Uttar Pradesh has over 15 worth over Rs 55,000 crore under construction in the mode and Karnataka has the highest share of over 49% with 53 worth over Rs 25,000 crore under bidding, according to the study.

While Gujarat ranks second with a share of over eight% and has about 22 worth over Rs 13,600 crore under construction in the mode, followed by which has about 21 worth over Rs 12,700 crore and has third highest share of about 7.7%, Maharashtra (7.3% share) and Andhra Pradesh (5.8% share).

With three worth over Rs 8,100 crore under bidding, Maharashtra accounts for about 16% share followed by Andhra Pradesh (with a share of about 10% with 16 projects worth over Rs 5,000 crore), Gujarat (with a share of over seven% with 6 projects worth about Rs 3,800 crore) and (with a share of over four% with five projects worth over Rs 2,200 crore).

There are a total of about 881 projects worth over Rs 5 lakh crore are being carried out in the country as of August, 2012, said Rawat. While there are about 230 projects worth about Rs 70,000 crore under operation, there are about 432 projects worth over Rs 3.8 lakh crore under construction and 172 projects worth over Rs 78,000 crore are under bidding based on the mode.

The roads sector forms almost 52% in numbers and 45% in value terms (457 projects worth Rs 2.4 lakh crore) of the total projects that are in different stages of implementation, highlights the study.

The road sector alone accounts for over 40% share in total projects under construction followed by urban development and energy (share of 20% each) and ports (over 11%). Besides, roads rank second accounting for about 31% of total projects under operation after ports sector which has a share of about 35%.

With a share of almost 65%, roads sector ranks on top with highest share in projects under bidding in the mode, according to the study.

On issues faced by the sector, he commented, land acquisition, constraints of long term funds due to prevailing and delay in getting forest and environmental clearances are certain significant problems being faced by the private sector players in the roads sector.

The apex body has recommended for facilitating infrastructure financing loans, ensuring speedy clearance to and imparting technologically advanced, training facilities to enhance the capability within the road construction industry.

First Published: Mon, December 03 2012. 11:54 IST