BS reported that National Highways Authority of India plans to increase the outlay on building roads for 2010-11 by 64.6% to INR 47,736 crore. The target for the current financial year is INR 29,000 crore, subject to revision.
Out of the total sum for the year, over INR 25,000 crore will come through public private partnerships and the rest from oil cess and borrowings. The authority borrows money from tax free infrastructure bonds and external agencies.
An NHAI source said that the original estimate of INR 29,000 crore for this financial year would come down. The source also added that the revised estimate for the next financial year would increase as a number of initiatives taken this year would be implemented next year.
Also, the road transport ministry has demanded an increase of 62% in its gross budgetary support, from INR 15,450 crore to INR 25,050 crore. Sources in the know say the revised Budget Estimate for the current financial year will be INR 20,000 crore.
Meanwhile, NHAI has been able to register a substantial rise in the number of projects awarded in the current financial year so far. The authority has so far been able to award 28 projects against a target of 126 for the entire financial year. Only eight projects were awarded in the last financial year.
After setting a target of 20 kilometers a day, Mr Kamal Nath minister of road transport and highways announced a number of steps to arrange resources to meet the target of about 7,000 kilometers a year. One of these was announcing a shift from awarding road projects on the basis of the National Highways Development Program to develop roads across the country in seven phases to awarding them on an annual basis.
NHAI has made two work plans for 2009-10 and 2010-11. Under its Work Plan I, which is a target of projects to be awarded in 2009-10, the authority plans to award the 126 projects worth INR 100,000 crore and cover 11,928 kilometers.
(Sourced from www.business-standard.com)
