MUMBAI, May 4: As Maharashtra's PWD minister, Nitin Gadkari has had an impressive stint. Considered the star performer in the state Cabinet, he has been credited with the success of the Maharashtra State Road Development Corporation (MSRDC). Not only he has managed to raise private funds for a public sector infrastructure company but almost all projects are running ahead of schedule. In the process, he has also been accused of riding roughshod over procedures. Gadkari has brushed this off as resistance from a bureaucracy too slow for his pace. Best known for getting the Mumbai-Pune expressway and 55 flyovers in Mumbai off the ground, Gadkari hopes to go down in history as the first minister to have created a rural roads network. In an interview to The Financial Express, he spoke on his four and half year stint in the ministry. Excerpts:How do you assess your performance at the PWD ministry?
It has been a very satisfying tenure. But I also acknowledge the fact that I could have donea lot more. The issue staring at me when I became a minister was how to complete projects that would cost Rs 14,000 crore with a budget of exactly Rs 1,400 crore. The only way out was privatisation. Everyone said, "It was not possible. I was very discouraged. Until I saw what Jasamara Corporation had done in Indonesia. They were earning a toll income of Rs 900 crore per year, on a road sector investment of Rs 25,000 crore. I was determined to replicate this. Today, we have 130 BOT projects underway and Rs 6,240 crore has been disbursed. Of the 17 national highway projects, nine are in Maharashtra. I am ready to start another 10-15 as soon as I get government approval.
Much of the work is being executed by the MSRDC or the government. Expectations that the private sector would come in as developers have not been met.
I will not blame them. The private sector really did not have faith in the system. So they were very conservative and refused to take risks. Had we given them the Mumbai-Puneexpressway, it would have cost the state Rs 3,600 crore. It was not a price we were willing to pay. We had to demonstrate that the system could deliver a viable project. The MSRDC has fulfilled its brief. But what really gave us confidence was when we tapped the market for Rs 500 crore, we got Rs 1,190 crore. Today, we are so strong that I told the PM to give us Rs 10,000 crore of the Rs 30,000 crore worth of road projects that the NHAI wants to tender. We will raise the money and construct the road.
But even if large industrial houses did not pitch in for the mega project, all the small ones like bridges and and small roads are being developed by small local entrepreneurs all over the state. They are local construction firms which have taken the risk and placed their faith in the system. It is a tremendous feeling.
To what do you attribute this success?
It's really hard to tell but I would like to believe that it is due to our uncompromising stand on quality. We were clear that that whatever webuilt had to conform to international standards. So we created the system to deliver that. Simple things like paying contractors on 15 day cycles for work completed, anything that gave them confidence in us.
The result has been massive construction activity throughout the state. We have bought Rs 2,000 crore worth of steel, cement and bitumen in the last two years. In this recession, you can not under-estimate the importance of this. We are also responsible for modernising the construction industry. Before we began there was very little construction equipment in the state. Today, there are 13 rigs, 20-25 ready-mix concrete plants, pre-casting techniques have improved and what have you. We now have the equipment to pave a kilometre a day. When the history of Indian construction is written, these projects will be the landmark.
You have in the process acquired a reputation of having scant regard for rules and procedures.
That is completely untrue. The way the bureaucrats in Mantralaya work is abig problem. Look at the World Bank-funded MUTP-I and II. Since 1987, they have been only conducting studies. They wanted me to do the same. And yet everyone from the Atkins commitee onward has recommended the flyover. What is the issue? Some people who earlier recommended the flyovers are now saying they are unneccessary. And when you are taking on works of this nature, something small could go wrong somewhere although that has not happened. The solution cannot be not to do any work. I have worked quickly and with transperancy. No favours have been given out. Our intentions are good.
What was the most difficult hurdle?
The bureaucracy. Approvals take too long. Just getting a bank guarantee can take a year. Also the attitude that raising money commercially means the state will go bankrupt is a problem. We could have done so much more if the bureaucracy was supportive. No one is willing to take responsibility. No one wants to put up ambitious public interest projects. Their attitude is "whybother." Eventually, it was the political leadership that came through for us.
Are you worried that some of the things your detractors said might come true?
The financial institutions and banks who have lent to us are not stupid. I will earn 20 per cent more than what is projected. If I am here for another five year term, you will see the MSRDC make a profit of Rs 1,500 crore.
You have faced a lot of opposition from environmentalists.
I am an environmentalist too. I have been personally responsible for planting 28 lakh trees in the state. For the Mumbai-Pune expressway, we have put aside Rs 20 crore for beautification- planting trees. Who are these people opposing the projects? What is their track record in preserving the environment? I have done more than them. I am pro-environment but not anti-development. They say flyovers will bring more vehicles on the road and increase pollution.
So let's dig up the existing roads as well and deter car owners. I don't understand theirattitude. These are extremists. Some unknown animal specie, which we have not viewed in decades, is more important than people.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.