The Government is developing a multi-modal transportation model for the country with greater emphasis on waterways as opposed to dependence on land transport in a bid to optimise logistical costs, a critical input to industry and manufacturing, stated Mr. Nitin Gadkari, Road Transport and Shipping Minister, while speaking at the CII National Conference and Annual Session 2015 in New Delhi.
Mr. Gadkari acknowledged the problems being faced by the Indian infrastructure sector and assured that the Government is taking steps like stimulating Pension & Insurance funds and promoting low-cost funds from abroad with the objective of relieving this strained sector. The Government is also committed to reducing the construction cost by adopting international construction norms and endorsing new technologies across the transport sector.
For the roads sector, the Minister said that his Ministry has taken over 25,000 km of roads & highways across the country to be developed on the newly-announced hybrid annuity model. While the road construction at present is around 12 km per day, the target is to reach 30 km per day, he added.
In his address, Mr. Vinayak Chatterjee, Chairman – CII National Taskforce on Infrastructure Projects – Monitoring & Advocacy and Chairman – Feedback Infra Private Ltd., complimented the Government for recognizing the economic multiplier effect of infra on the entire economy. He cited the specific importance of off – budget funding like constituting the National Infra Investment Fund with a sum of Rs. 20,000 crores; exploring medium and long-term funding options; providing greater thrust for institutional rejuvenation by stressing accountability and transparency and taking steps like bringing the entire transport sector under one ministry and corporatization of major ports; ensuring transparent process for bidding; broadening the infra base by giving greater importance to sectors like railways, inland waterway, coastal shipping, mass housing and, cleaning of rivers; and taking steps to recast the PPP and balancing the risk allocation, renegotiation, land acquisition and environment clearance. At the same time, he requested the private sector to abstain from practices like over-bidding, gold plating, etc.
Going ahead, Mr. Chatterjee suggested creation of land bank corporations and a Public Purpose Validation Commission for smooth land acquisition, and creation of a National Electricity Distribution Company and PPP Renegotiation Commission to provide greater impetus to infrastructure sector in the country.
Mr. Prashant Ruia, CEO, Essar Group, in his remarks, emphasized the need for innovative financing models and supporting regulatory environment to create enabling framework and revive investments in the infrastructure sector.