Road projects worth Rs 12,000 cr cleared

As part of its measures to give a push to the infrastructure sector and clear roadblocks in project implementation, the government today cleared nine road projects worth Rs 11,596 crore.

Most of the projects are at an advanced stage of bidding while the construction work has also started on some projects. The projects are from Andhra Pradesh, Uttar Pradesh, Maharashtra and Bihar.

The approval, given under the Scheme for Financial Support to Public Private Partnership (PPPs) in Infrastructure, is for a stretch of over 1,226 km. A viability gap funding of Rs 2,295 crore has been provided under the scheme. The projects are expected to result in disbursal of about Rs 500 crore from the government in the current financial year, the finance ministry said in a statement.

The approval was granted by the Empowered Committee headed by Economic Affairs Secretary Arvind Mayaram. It also comprised Secretaries of the Planning Commission, Expenditure Department and Secretary of the line ministry dealing with the subject.

The scheme was launched in 2005 as the government realised it could not meet the huge financing needs of the infrastructure sector from public finances alone. Since these projects have a long gestation period and are not always financially viable, government support can improve their financial viability. 

As the infrastructure requires about $1 trillion dollar in the 12th Five Year Plan, the government has been trying to expedite infrastructure projects, many of which are stuck due to various regulatory clearances. 

An investment tracking system for monitoring projects with investment of Rs 1,000 crore and above in the private sector has been put in place.