Nath promises overhaul of road & highway sector

May 30, 2009

In what could be seen as strong indications of an overhaul in the working of road transport and highway sector, new minister Kamal Nath on Friday made it clear that he would go for wholesome changes in the ministry to put road construction back in top gear.

After taking charge of the ministry, Nath said his focus would be on implementation of projects on the ground rather than making big plans — a clear indication that the sector will get a major boost.

“Sadkon ko napi jaati hai, plans ko nahin (roads are measured and not the plans). Lot of thought has been given to planning in the past two years. Now we have to deliver. Performance is evaluated on the basis of kilometres of roads that are built. Now our agenda is of change. The system has to be overhauled so that work on the ground happens. Planning has to be delivered on roads,” he told reporters.

Nath, who was shifted from commerce and industry to road transport and highways, said he was “excited” about his new portfolio. He said he was looking forward to a challenge and he had got one.

On highway projects under public private partnership (PPP) model finding lukewarm response from private developers, the minister said, “Models which are not working have to be done away with and we need to adopt models which can attract investors. Moreover, just awarding the work is not just enough. We have to ensure progress is made on the ground.”

Spelling out his approach to bring the key infrastructure sector back on track, the minister said he was looking at structural changes in the system and procedures to make it result oriented. “Some of the old regulatory frameworks relating to transportation like multiple permit and Motor Vehicles Act have to be looked at from new perspectives. Old laws have to be amended,” he said.

Ministers of state Mahadev Khandela and R P N Singh also assumed charge on Friday.

Source: timesofindia.indiatimes.com

Written by ITW Editor · Filed Under Investment and Finance

Nath promises action on roads

May 30, 2009

Once the high-profile commerce minister making India’s voice heard at global trade fora, Kamal Nath is now tasked with putting the country’s teetering highway projects on track. The surface transport ministry had drawn criticism for slippage in project implementation and delay in awarding contracts , but the new minister says actions will speak for themselves . Excerpts from an interview:

What will be the key focus areas of the new government?

In the past, there has been enough planning. Now thoughts have to be transformed into action. We have to ensure that the system and platforms are workable. Performance has to be measured not in terms of plans, but actual work. Things have to be looked at in a new way. In a few weeks, a new model will be found so that India can build the highest number of road kilometres. We have to see that all the outlays are utilised. A successful plan is that which is converted into action.

There have been talks of roads as a stimulus to the economy…

The greater the outlay on construction of roads, the greater the impetus to the economy. If you look at the development of countries like China, Japan and those in Europe, it is all based on their roads and other major infrastructure. There could be better airports but without good roads it doesn’t help much. Along with highways, rural roads too have to be given proper attention.

Earlier, there were delays on the part of the government… but a big hurdle was the paucity of cash owing to the impacts of the financial slowdown, which too delayed project implementation…

We will meet all the states in a month’s time to remove the bottlenecks . Some old regulatory frameworks on transportation such as multiple permit and others have to be reviewed . We are looking at new models . We will look at new ways of capital inflow.

Source: economictimes.com

Written by ITW Editor · Filed Under Investment and Finance

South India�s road to future may soon be completed

February 16, 2008

South India�s much-touted road to the future may be finally here. Industry in Bangalore is pushing for the completion of the expressway between the city and Mysore.

After 13 years, work is speeding up on the road connecting Bangalore and Mysore, popularly known as the Bangalore Mysore infrastructure corridor or BMIC. The road will cut the driving time from the three and half hours to just 90 minutes.

The BMIC is still mired in controversy over land acquisition but all that may change soon. We hear from sources that the governor of Karnataka is taking a special interest in the project and the sudden activity on the project is partly due to pressure from the industry. Sources say the governor is speeding up land acquisition and clearances from forest, revenue and other departments. And though nice officials declined to comment on camera, they say they are glad that industry is finally taking a stand.

“I think it’s the single most important project for Bangalore. It will not only provide more employment but also improve the quality of life of the people of Bangalore. ” says Mohandas Pai, director-HR, Infosys.

“If you want private players to develop roads, the government has to address these land issues very seriously.” Adds Kiran Mazumdar Shaw, CMD, Biocon.

The Nandi infrastructure corridor enterprise had envisaged a four-phase project that included a 111-km super expressway to Mysore with 5 satellite towns on the way, a 41 km peripheral ring road on the outskirts of Bangalore and a 9.5 km connecting road to the expressway.

Today only two stretches of the peripheral ring road are open and the company is not collecting toll, as the link is not complete. But despite losses of over Rs 10 crore a month, officials are glad there’s been some progress.

Source: moneycontrol.com

Written by ITW Editor · Filed Under Media