‘Infrastructure will hog the limelight in the coming decade in India’
NEW DELHI: Minister for Road, Transport and Highways Kamal Nath on Thursday wooed foreign investors to invest in the road sector, stressing that infrastructure would hog the limelight in the coming decade in India.
Speaking at a business function in Singapore, Mr. Nath said that the IT industry had ruled the roost during the past two decades but henceforth it would be the infrastructure sector, which would steal the limelight. He called upon investors to contribute to the effort and be part of the new success story.
Assuring them of accommodating their suggestions to improve the present process to ensure them a remunerative return , Mr. Nath said that the country intended to open its door for their contribution in the construction of 7,000 km of world class road per year.
Pointing out that the seven percent growth of traffic and 12 per cent growth of vehicles annually, Mr. Nath underlined the immense potential for growth in the road sector and the vast opportunity that it held for private sector participation to cash in on the widening prospect.
Besides assuring the investors of the country’s strong fundamentals and strong growth trajectory, Mr. Nath sought to take the investors into confidence about the measures under way at reforming the processes and bringing about structural changes in the NHAI.
The Minister regarded the Public Private Partnership (PPP) model as the most suitable for the road sector and said that of the 12,000 km road targeted to be taken up for construction in the next financial year, 7,000 km would be awarded on the basis of BOT (Toll basis) and 5,000 km would be on annuity and EPC basis.
Mr. Nath intends to hold similar road shows in Europe and the U.S. in the next two months to rope in foreign investors in the infrastructure sector. Mr. Nath also called on the Singapore Prime Minister Lee Hsien Loong and sought his cooperation to build India’s infrastructure sector.