According apex industry body with around 11 road projects worth over Rs 4,400 crore, Tamil Nadu ranks second, of the total 115 road projects worth over Rs 21,600 crore under operation across India, Maharashtra has the highest share of over 22% with 21 road projects worth over Rs 4,800 crore, according to a study titled ‘PPP 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 PPP 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 road projects worth over Rs 21,600 crore in the PPP mode under operation, while 219 road projects 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 ASSOCHAM 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 ASSOCHAM.
With the highest share of over 33%, Uttar Pradesh has over 15 road projects worth over Rs 55,000 crore under construction in the PPP mode and Karnataka has the highest share of over 49% with 53 road projects worth over Rs 25,000 crore under bidding, according to the ASSOCHAM study.
While Gujarat ranks second with a share of over eight% and has about 22 road projects worth over Rs 13,600 crore under construction in the PPP mode, followed by Tamil Nadu which has about 21 road projects 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 road projects 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 Tamil Nadu (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 PPP 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 PPP projects that are in different stages of implementation, highlights the ASSOCHAM 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 PPP mode, according to the ASSOCHAM study.
On issues faced by the sector, he commented, land acquisition, constraints of long term funds due to prevailing economic slowdown 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 road projects and imparting technologically advanced, training facilities to enhance the capability within the road construction industry.