Inaugurating the Logistics '99 conference organised by the Confederation ofIndian Industry with the theme "Integrated Logistics & Supply ChainSolutions in the New Millennium", the minister said the state government waspursuing the policy of encouraging privatisation of infrastructuredevelopment projects in future not only to attract more foreign capital butalso to increase efficiency in implementation and operation of theprojects.

Admitting direct funding of road projects had severe limitations, he saidinnovations had taken place to raise resources from private entrepreneursalso.

He said the government had set up a new Highways Department and also put incharge a minister for this sector. Private parties like L&T, ICICI, IL&FS,Kinhill Engineers Pvt. Ltd of Australia, Daya of Malaysia have been engagedby the Highways Department.

The minister said during 1999-2000, the government would take upconstruction work on three bridges and one road at a cost of Rs 119 lakh.During the current year, the government has taken reconstruction of 10bridges at a cost of Rs 4.77 crore. However the government had budgetaryconstraints in road development work.

Tamil Nadu has earmarked Rs 7,500 crore for development of roads in theNinth Plan. A CII task force has estimated that the state would require Rs2,150 crore per annum for roads development.

"But the government is not able to allot such a huge investment in thissector," the minister said.

Hence it had taken financial support from Nabard and Hudco for roaddevelopment projects. With their support the government has taken up amammoth project for construction or reconstruction of 104 bridges.

Of these 104 bridges, 50 are being built at a cost of Rs 99.5 crore withfinancial assistance from Nabard and 54 are under construction with Hudcoloan assistance. Total cost of the project will be Rs 60.71 crore.

The state government has also received, Veerasamy said, loan assistance ofRs 148 crore from Hudco for development of radial roads leading to Chennaicity.

The state government is also pushing for Central government assistance todevelop ports and airports in the state. Infrastructure development in thestate, the minister said, would ease traffic congestion in urban areas andbring about accelerated economic development of both rural and urban areas.