Govt to invest Rs 1 lakh-cr on National Highways

The government plans to invest Rs 1,00,000 crore to build 12,000 kilometres of national highways in 2009-10 and would opt for both the equity and debt routes to raise funds for this, Road Transport and Highways Minister Kamal Nath said today.     

Around 60 per cent of the investment is expected to be generated from road-tolls while the rest is expected to come equally from annuity and EPC, the minister explained at an event in the financial capital.     

"We are working on the plans. Around 60 per cent of the investment will come from tolls. And half from annuity and EPC," he said.

With a view to woo global investors to fund domestic infrastructure projects, the government was planning to come up with innovative bidding models, he added.     

"We are working on models which will attract bids. The aim is how we can improve bidding models and how to make contracts investor-friendly," Nath said.    

The first preference, while implementing the projects, will be on toll models and the government plans to invite bids for tolls.

The government is looking at options of setting up specialised tolling companies similar to that in advanced countries, Nath added.

The government, in association with the country's second largest lender ICICI Bank, plans to conduct road-shows to attract investors in Asia, Europe and the US, the minister shared, adding "it will demonstrate our seriousness and will bring in best technology and best practices."     

According to the minister, land acquisition continues to be a major challenge while executing infrastructure projects.     

The government will step up efforts on land acquisition, Nath said.     

"We will only award bids once 80 per cent of the land is in possession."

ICICI Bank's Managing Director and CEO Chanda Kochhar, said domestic consumption and investment continue to be the growth-drivers of India's economic growth.