The Union Budget 2014 has given importance to fast-tracking highways and improving the road infrastructure to augment the nation’s arterial network.
“The sector had taken shape between 1998 and 2004 under NDA-I. The sector again needs huge amount of investment,” said Finance Minister Arun Jaitley while tabling the Budget. “I propose investment in National Highways Authority of India and State roads of an amount of Rs. 37,880 crore which includes Rs. 3,000 crore for the North East.”
Mr. Jaitley also reaffirmed the NDA government’s commitment to the Pradhan Mantri Gram Sadak Yojana launched under the prime ministership of Atal Bihari Vajpayee and allocated Rs. 14, 389 crore for the same.
White Paper Later, talking to journalists, Minister for Road Transport and Highways Nitin Gadkari said in a follow-up on the White Paper released a few days back, his Ministry has “asked the Prime Minister to allow us to clear projects of over Rs. 1,000 crore. Many projects in the past have got delayed due to a number of committee approvals required for their implementation.’’
The Minister said the Cabinet in its meeting on Wednesday had approved 11 projects worth Rs. 16,000 crore while his office had so far cleared Rs. 40,000 crore worth of projects which were stuck due to “inordinate delays’’ in clearances.
A similar approach by the other Ministry under his charge — Shipping — should combine to contribute nearly two per cent to the Gross Domestic Product in the next couple of years, he said.
The Minister was not in favour of attracting foreign investment in the road sector because the Government’s approach was to encourage Indian contractors and more local employment.
