Minister of surface transport M Thambi Durai told reporters that the government has identified the stretch of route for expressways which will link major ports and industrial centres and will be offered on a build, operate and transfer (BOT) scheme.

Stressing that the government alone was not in a position to undertake the construction of highways and expressways, Durai said that it was essential to have private sector investment in this area. Besides the budgetary allocation and funding by financial institutions, the government expects non-Indian residents (NRIs) to participate in the development of expressways. Durai said the National Expressway Authority of India (NEAI), which will be modelled along the lines of National Highways Authority of India (NHAI) will oversee the maintenance and proper functioning of the expressways.

The minister saidthe centre will offer numerous concessions including tax rebate to those proposing to invest in the construction of highways and expressways in the country and has invited foreign investors to participate too.

Durai said as part of government efforts to attract private investment in the roads sector, a three-day international conference on expressway development will be held in the Capital from December 14. "The conference will be inaugurated by prime minister Atal Bihari Vajpayee", he added.

He said over 1000 nominations for the conference has been received including from financial institutions, foreign consultants, road builders, automobile manufacturers and project consultants. "The conference will also be attended by chief ministers and ministers of transport of various states as also by ministers of various countries," he added.

"The conference will also deliberate over how to take up the various projects and devise a mechanism to ensure returns on investment from private sector," saidDurai.

Durai said the surface transport ministry has already done preliminary studies which show that it would require about Rs 9 crore to build one km of expressway, besides Rs 1 crore required for purchase of land. "The government can invest upto one-third of this cost with the private sector to encourage investment. The private sector will get a maximum of 30 years to realise its investment," he added.

The minister said the surface transport ministry has also suggested a levy on automobile manufacturers to the finance ministry, which would be used for construction and maintenance of roads.