By Namita Tewari:
Plans are also afoot to make the vehicle scrapping policy more attractive, besides expediting the land acquisition process to create a network of expressways and highways
TO FURTHER give a push to the country’s infrastructure, big plans are lined up that include roping in an advisor for asset monetisation and offering attractive schemes to private players, including identified 3,000 kms of projects, Union Minister Nitin Gadkari said. Plans are also afoot to make the vehicle scrapping policy more attractive, besides expediting the land acquisition process to create a network of expressways and highways.
“We are planning to rope in an Indian expert with experience in global economy for advising NHAI on asset monetisation,” Road Transport and Highways Minister Nitin Gadkari told PTI in an interview. The advisor, apart from asset monetisation, will guide the National Highways Authority of India (NHAI) on innovative ways to meet funding requirements, he said. After the huge success of the maiden bundle of nine highway projects under TOT (toll, operate and transfer) totalling 681 kms of roads in Andhra Pradesh and Gujarat in 2018 that fetched NHAI Rs 9,681 crore, the second tranche of 586 kms was cancelled in February 2019 due to lukewarm response.
TOT is a model for monetising operational national highway projects. The investor makes a lumpsum payment in return for long-term toll collection rights backed by a sound tolling system. The concession period is 30 years. Up to 49 per cent divestment is allowed till two years of the concession period while up to 10 per cent change in ownership is allowed after two years. The Government now plans to offer 550 km of roads under TOT.
Apart from asset monetisation, Gadkari said the Government will attract private players into highways building and has already identified 3,000 kms to be bid out under the build operate and transfer (BOT) mode. Ratings agency Crisil in a recent report said to reinvigorate private sector interest, the Government has resorted to HAM (hybrid annuity mode) and BOT which will ensure putting public-private partnership (PPP) projects in the roads and highways sector back on track.