Rajasthan govt plumps for private participation in roads

To award 20,000 km state highways through private-public partnership over 5 years; powers to new state agency enacted

At a time when the Union ministry of roads transport is averse to awarding projects through public-private partnership (PPP), the government of Rajasthan plans to award 20,000 km of state highways through this mode.

To this effect, the state's legislative assembly on Friday passed the Rajasthan State Highways Bill, 2014. It seeks to set up a state highways authority within a month, to achieve 20,000 km of road building over the next five years.

The new law will empower the state government and the highways authority to prescribe the manner for determination of compensation and rules regarding land acquisition, operation and safety. While most of the projects will be financed by private investment, central and state budgetary grants will also be utilised. The state highways authority would also be able to raise funds from the market.

WHAT THE LAW ENTAILS

• Rajasthan government plans to award 20,000 km of state highways through the PPP mode
• The state's legislative Assembly on Friday passed the Rajasthan State Highways Bill, 2014 to this effect
• The new law will empower the state government and the highways authority to prescribe the manner for determination of compensation and rules regarding land acquisition, operation and safety
• Most of the projects will be financed by private investment, central and state budgetary grants will also be utilised
• The Authority will also have power to regulate traffic and take other measures to improve safety and smooth flow of traffic on the highways

There is also an introduction of a control zone comprising a strip of 100-metre width along the roads. While no construction will be allowed within 25 metres of the road boundary, development in the remaining 75 metres will be permitted in line with rules to be made by the state government.

Under the new law, the authority will also have power to regulate traffic and take other measures to improve safety and smooth flow of traffic on the highways.

The central roads ministry has not been able to award PPP projects for a while. Economic slowdown, coupled with land acquisition and environmental clearances, beside funding issues, have soured the government’s dream of a private partnership. Due to the slowdown, there is slow growth in commercial traffic, due to which the initial assumptions by developers on the revenues went offtrack.

According to a roads ministry official, the central government's focus will now be on awarding roads projects through EPC (engineering procurement construction) for next few years till the markets get fully revived.