Plan to develop 35000 km of National Highways in the next five years

The Prime Minister reviews the Road Transport & Highways Ministry's ambitious plan of developing 35000 km of National Highways in the next five years. The plan is likely to reach 400 districts connecting 300 most populous district headquarters of the country thus making the Highway Development Programme more inclusive.

The review meeting, called just after the conclusion of parliament session yesterday, was attended by Finance Minister, Road Transport Minister & Planning Commission Deputy Chairman. At the meeting, the Minister for Road Transport & Highways, Shri Kamal NathKamal Nath briefed the Prime Minister on the progress of the programme and the road map ahead. He also raised the issues, irritants being faced and the challenges ahead for the road sector.

One of the major concerns raised by Shri Kamal Nath was the long time-frame required for road project implementation. Shri Nath pointed out that the current process takes almost 3 years for actual work to start from the conception of a road project and another 3 years to complete the project. The Minister came out with several suggestions to reduce this time frame and expedite the implementation.

Other issues discussed in the meeting were financing models and means for this ambitious programme, tolling fee & structure, design of highways based on traffic needs, issues related with Model Concession Agreement like termination clause, exit clause etc. Development of a network of expressways was also discussed in the review meeting.

The Prime Minister constituted a committee to resolve the inter-ministerial issues raised by Road Transport Ministry. The committee will be headed by Shri B K Chaturvedi, Member, Planning Commission with Secretary, Ministry of Finance and Secretary, Ministry of Road Transport & Highways as members. The committee would report to the Prime Minister in 2 weeks time.

The issues to be considered by the committee include measures for expediting award of projects, financing road projects, restructuring of 4 / 6 laning projects based on traffic requirements and those in backward area, and ensuring inclusive and equitable growth. Another area on which the committee will give suggestions is making projects attractive for banks and private investors especially in the wake of the present global recession.

It will resolve some of the concerns raised by developers relating to the review of Termination Clause, conflict of interest clause and introduction of Exit Clause, and making dispute settlement process in NHAI faster and more effective. It will also suggest Fast Track Mechanism for resolution of inter-ministerial issues not requiring CCI’s approval and to monitor progress on a regular basis for a mid-course correction.

Shri Kamal Nath said that the objective of the Highway Development Programme is to make a visible difference in the country. He pointed out that road development is an economic stimulus that creates permanent assets.

Thus, the road development programme from now on will not only provide the stimulus to the Indian Economy but will also reach the under-developed and far flung areas of the country. Shri Nath thanked the Prime Minister, Finance Minister and Planning Commission for their support to the ambitious mammoth road development plan of the Ministry.(EOM)