Govt mulls setting up regulator for roads sector

Move made to readdress private companies that have recently exited projects due to delay

The Road Ministry is looking at setting up a road and transport regulator to address the issues such as delays in development of projects and work on ways to remove the hurdles in the sector.

"This proposal is being re-looked. We had thought about it a couple of years back, we are again thinking about it. It is a long process but we shall start deliberating on the matter soon," a Road Ministry official told PTI.

The Ministry is likely to discuss the matter this week and commence the process for the same.

"We will discuss this within the (Road) Ministry first and then approach the Cabinet for the same...But its a long process, will take time," the official said.

This move may be linked to the recent move by some private companies exiting the projects on account of delay in various clearances.

"Right now NHAI (National Highway Authority of India) alongwith the (Road) Ministry awards the project and the developer executes it. But if there is any problem where should the aggrieved party go?," he said.

According to sources, NHAI is opposing the move.
 
Planning Commission has also suggested setting up an independent regulatory authority for the road sector for determining tariff and service quality.

It has advised that the key functions of the regulator should include tariff setting, regulation of service quality, assessment of concessionaire claims, collection and dissemination of sector information, service-level benchmarks and monitoring compliance of concession agreements.

The commission will set up a group of technical experts and transport planners to suggest policy interventions and operational strategy required to re-orient the transport sector.

Overall, it is estimated that the infrastructure sector will need investment of USD 1 trillion (about Rs 53.50 lakh crore) in the 12th Five Year Plan period (2012-17).

The government, meanwhile, is looking at investments of over Rs 2.6 lakh crore for the roads sector over the next five years.

It is expected that 1,000 km of expressways would be completed during the Plan, while land for another 6,000 km would be acquired to initiate work.