By TIOL News Service

NEW DELHI, OCT 25, 2017: TO create much larger road network and to debottleneck the road sector, the Central Govt has launched a new Umbrella program. This Road Building Program, for 83,677 km of roads involving capex of Rs.6.92 lakhs crores over next 5 years.

Out of this, Bharatmala Pariyojana to be implemented with an outlay of Rs.5,35,000 crores will generate 14.2 crores mandays of jobs.

The following categories of roads (34,800 km) have been proposed under BMP:

++ Economic Corridors (9000 km)

++ Inter Corridor and Feeder Route (6000 km)

++ National Corridors Efficiency Improvement (5000 km)

++ Border Roads and International Connectivity (2000 km)

++ Coastal Roads and Port Connectivity (2000 km)

++ Green field Expressways (800 km)

++ Balance NHDP works (10,000 km)

++ Bharatmala works have been proposed for completion in 5 years by 2021-22 through NHAI, NHIDCL, MoRTH and State PWDs.

++ Substantial delegation of powers has been provided to NHAI, NHIDCL and Ministry of Road Transport & Highways to enable speedy implementation.

++ Funding for BMP: Rs.2.09 lakhs crores will be raised as debt from the market, Rs.1.06 lakhs crores of private investments would be mobilized through PPP and Rs. 2.19 Lakhs crores is to be provided out of accruals to the Central Road Fund (CRF), ToT Monetisation proceeds and Toll collections of NHAI.

++ In addition to 34,800 km under Bharatmala, balance works of 48,877 km of works under other current schemes will be implemented in parallel by NHAI/MoRTH with an outlay of Rs.1.57 lakhs crores. This will be financed by providing Rs. 0.97 lakhs crores from CRF and Rs. 0.59 lakhs crores as Gross Budgetary support.

++ ToT Monetisation: For the first time ever, monetisation of 82 operating highways under a low risk Toll – Operate- Maintain-Transfer (ToT) Model has been initiated with a private investment potential of Rs 34,000 cr. The 1st bundle of 9 NH stretches of 680.64 Km has been put out to tender by NHAI with potential monetization value of Rs. 6258 cr.
 
Given the strong macroeconomic fundamentals of the economy and the continued public spending at substantially enhanced levels in comparison to previous years, Government has taken several steps to improve the investment climate in the country. The comprehensive economic reforms undertaken by the government have resulted in unprecedented levels of foreign direct investment in the last 3 years. However, the domestic investment of the private sector continued to be affected by the growing contamination of loans advanced in the past, which have now become unsustainable. Besides affecting the general investment climate these non-performing loans have also necessitated an unprecedented levels of provisioning, particularly in the public sector Banks. This in turn has affected their lending capabilities that has particularly affected the Medium and the Small scale sector. It may be seen that while many corporates have accessed the bond market in the recent past, it is the MSMEs that have been deprived of capital due to the inability of the Banks that are weighed down by the excessive burden of very demanding provisioning norms. This called for effective steps for creating a conducive environment in which PSBs could provide loans to the private sector, especially the Medium & Small Scale industries.