Centre eyeing state highways with high traffic for lane expansion: Gadkari

The Centre is mulling a scheme under which it will take over state highways having high-traffic density for expansion, Union Minister Nitin Gadkari said on Saturday.

Gadkari, who handles the road transport and highways portfolio, said a state highway will be expanded into a four or six lane road by the Centre and toll will be collected for 25 years before handing the asset back to the state.

"we will take that highway from the state government (and) will collect the toll," Gadkari said, speaking at a convention organised by the Association of National Exchanges Members of India (ANMI) here.

The minister, who has built a reputation for constructing mega road projects across the country, exuded confidence that the money invested for a particular highway's expansion into a 4-6 lane carriageway can be recovered in 12-13 years itself.

He, however, did not offer any elaboration on the evinced plan like if the Centre is in talks with any states or the overall outlay under this or if such an activity will be undertaken by partnering with a private entity.

The minister listed a slew of projects being undertaken, including 75 access controlled expressways across the country which will ensure faster movement of goods and people across the country.

He said there is a plan underway to build an expressway between Mumbai and Bengaluru, which will ensure that one can drive from the capital of Maharashtra to that of Karnataka in five hours.

Addressing the investors in the audience in his virtual address, Gadkari said there are a lot of opportunities in the road sector courtesy the works undertaken and the plans which the government has.

The internal rate of returns on such investments is very good, the minister said, adding that the only aspect he is worrying about at present is the currency volatility which make the landed cost of foreign currency very high due to hedging.

The minister also said that a lot of global companies have set up manufacturing base in India and the government believes the overall revenue of auto companies is expected to double to Rs 15 lakh crore in the next five years against Rs 7.5 lakh crore at present.

The government is also very focused on creating public options, and sees the number of buses going to 10 lakh from the present 1.5 lakh, Gadkari said without giving a timeline for the same.

There is also a plan to make 'bus ports' on the lines of the airports, where the Centre will develop bus depots located on prime plots into swanky facilities with lodges and restaurants, Gadkari said.

Meanwhile, Sebi's wholetime member Ashwani Bhatia said the capital markets regulator will very soon be setting up an ad hoc advisory committee for brokers.

A career banker turned capital markets regulator, Bhatia exhorted the industry to work in mission mode to increase the demat accounts like the work undertaken by lenders in opening the over 45 crore jan dhan accounts in 2014.

There are 150 crore saving bank accounts in the country, but the number of demat accounts is only 10 crore or 7 per cent of it, Bhatia said, adding that the gap between the two represents an opportunity for the capital markets stakeholders like brokers to expand into.

He asked the capital market intermediaries to be diligent while undertaking such a task, advice the client well and ensure that one does not invest merely on the basis of rumours.

Speaking at the same event, Utpal Sheth, the chief executive of Rare Enterprises said this is the age of intangibles and it is very important for an investor to understand the same. He also said that mistakes make a better investor.