Banks Will Release Funds For Roads And Highways Post 15th August, Says Gadkari, Adds UPA's Land Acquisition Act In For Modification

Latest by 25th of next of month, the new government would have cajoled the hitherto recalcitrant banking system to shed its on going reluctance to fund construction of roads and highways and come forward to liberally release finances for their execution through EPC mode as it has shelved the PPP mode to build roads and highways for an initial period of two years, stated Mr. Nitin Gadkari, Minister of Road Transport & Highways and Shipping.

The Minister also indicated that the new government is keen to re-look at UPA's Land and Resettlement Act 2013 since it is under pressure from various state governments to bring in necessary modifications and changes in it since acquiring land for public projects are becoming cumbersome for industry which from the day one opposed it tooth and nail.

Inaugurating a National Roads & Highways Summit 2014 organized by PHD Chamber of Commerce and Industry, Mr. Gadkari also said that his ministry has been working with an integrated approach with the ministries of railways and defence to acquire their unutilized land for the purpose of creating public infrastructure such as roads and highways among others.

The Minister also disclosed that thousands of kilometers and national highways would be built with cement as cemented roads and highways require no maintenance for a longer period provided the cement producing corporates formed no cartels and supply it to road builders at a reasonable price.

Mr. Gadkari informed the members of the PHD Chamber that between August 15 to 25, his ministry would have resolved the funding issues with the chief executive officers of the public sector banks, asking them to give up their insistence not to fund roads and highways projects, fearing addition to their non-performing assets (NPAs) as the government would stand behind them in case they come forward to release funds for stalled roads and highways projects which initially needs Rs.240,000 crores.

The Minister also said that the new government would lay out multiple inland routes and the beginning of this would be made by linking Allahabad and Haldea with land route which would not only commute passengers in it but also freight and other goods and services.

Mr. Anil Swarup, Additional Secretary, Cabinet Secretariat in his observations said that speedy clearances for infrastructure projects would be forthcoming as nearly 10 states have launched their web portal, entailing all relevant information about the projects submitted for approvals with latest information on them.

The new government was walking extra miles to ensure that projects approvals were not dragged on and bureaucracy has become much more pro-active to facilitate their clearances provided all due diligence was done by promoter of the infrastructure related projects, he said.

In his welcome remarks, Mr. Sharad Jaipuria, President, PHD Chamber complemented the new government for devoting all its energies for creation of infrastructure that is required to put India on higher trajectory so that all round prosperity becomes pervasive and demand for industrial products are created and new job opportunities emerged for huge chunk of Indian masses.

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