Road transport & highways minister Kamal Nath has asserted that the UPA in its second innings will build more roads in its first year than the NDA did in its entire tenure. Nath, however, accepted that there were significant challenges as highway projects are finding few takers, and promised a slew of measures to push forward his target of building 20 km of new roads everyday.
While the government has now decided to depend more on non-toll methods of financing road construction projects, it is also reviewing the prevalent toll policy to ensure that funding costs are fully met.
?Last year, there was a view that we should only be doing toll roads. Now, it is a reality that all roads cannot be tolled?We have taken a decision that about 60% of the roads would be tolled roads and the balance 40% would be non-toll roads,? Nath informed the Rajya Sabha on Wednesday during a discussion on the working of his ministry.
Nath?s decision comes in the wake of the turmoil in international markets where finance for the infrastructure sector has dried up.
Consequently, there is little interest from private developers for BOT (Build-Operate-Transfer) toll projects.
In fact, as the minister pointed out, of the 60 projects bid out last year, there were no bidders for 38 projects, and seven could only get one bidder. ?People have concerns on the viability of this. These were BoT roads, toll roads. The toll estimates that we had calculated were not acceptable and there was no viability of these roads,? he explained.
While the ministry has already begun looking at all these issues, the toll policy for national highways is also under the scanner. ?I have decided to review the toll policy that should the toll for a two-lane road be enough for only capital cost, should it be only for maintenance. Certainly, we must have toll for maintenance at least. What about capital cost? There are all these issues,? Nath said.
?Sometimes, it is said that the cost of diesel or petrol to use the bypass is less than the toll, because the cost of toll is more. At the same time, the cost of bypass also depends on what kind of bypass it is. So, if we try and use a formula which is based on the capital cost, the cost of bypass may be huge?Appreciating those concerns on toll, I will, certainly, look at toll policy again,? he said.
Responding to a suggestion from MP Bimal Jalan, Nath also announced that under the planned review, toll rates would be rounded to the nearest Rs 10.
The minister also announced construction of 15,600 km of expressways across the country, over and above the 1,000 km under NHDP. The ministry has already appointed a consultant to identify the stretches while a draft report is already ready.
The ministry is also planning to renumber the highways. Nath explained the rationale and said, ?Another initiative which we are looking at is renumbering of our National Highways to facilitate easy identification? highways on odd and even number must signify whether it is going from East to West or West to East which is done all over the world.?