Speaking at the economic editors' conference here on Thursday, Union surface transport minister Thambi Durai said a separate national expressways authority of India would be set up for implementing the plan on a priority basis.

The authority, to be set up on the lines of the National Highways Authority of India, would be entrusted with the implementation of projects connecting major ports with state capitals on an exclusive basis involving a cost of Rs 25,000 crore.

The expressways which will be set up connecting ports: Chennai to Kochi, Mumbai to Kandla, Bangalore to Mumbai, Mumbai to Delhi, Delhi to Visakhapatnam, Delhi to Calcutta, Calcutta to Visakhapatnam, Visakhapatnam to Chennai and Chennai to Tuticorin.

He disclosed that he had written to the finance minister for setting up a dedicated road fund,which would take up maintenance of roads.

The government was also contemplating the finalisation of a model concession agreement which would broadly satisfy the concerns of lending financial institutions in developing highways in the country, he said.

The minister stated that the currency crisis, coupled with uncertainties regarding road toll, amount of traffic and guarantees had made private investors apprehensive about funding infrastructure projects. However, he reassured that the ministry was looking at providing a cover against foreign exchange fluctuations to foreign investors.

In the national agenda for governance, the government had spelt out infrastructure including roads, ports, highways as priority areas and accordingly, plan allocation in these sectors had been enhanced since the investment requirements in these areas were so large that the government alone would not be able to meet them, he added. Therefore, the government was making all efforts to attract private investment.

The ministerannounced that 11 projects worth Rs 580 crore had been awarded to companies for smaller projects like bypasses, bridges and road over bridges. Another eight projects, costing Rs 253.7 crore were likely to signed in the next few months, he added.

In high density corridors linking ports and major industrial centres, four-laning of 250 km of national highways has been completed recently.

Four-laning of about 770 km of other high density corridors have also been taken up. These projects are likely to be completed by 2002.

Durai said taking into account the demand of the state governments to declare additional roads length as national highways, the government had proposed to declare an additional length of about 10,000 km of roads as national highways in consultation with the ministry of finance and the Planning Commission.

The minister said amendments to the major port trusts Act to facilitate corporatisation of major ports would be announced soon.

The ministry has constituted an expert committee toformulate a separate Coastal Shipping Act. The seven-member committee is expected to submit its report by the January 1999.

He said the government's new thrust and vigorous pursuit of developing infrastructure through comprehensive and transport policies involving public, private and foreign investment would usher in a new era in the country's development.