In what could mean a big investment opportunity for the construction industry in the years to come, the road transport ministry plans to more than double private participation in highway construction during the 12th Five Year Plan starting April 2012.
The working group for the Twelfth Plan has recommended the government to increase private investment in the road sector to Rs 166,738 crore (Rs 1667.38 billion) from Rs 62,630 crore (Rs 626.3 billion) in the ongoing 11th five year plan.
This projected increase in private investment will raise the percentage of private-sector contribution in the highway sector to 51 from the present 41.
The expenditure in road sector in the 12th Plan will double from Rs 152,201 crore (Rs 1522.01 billion) to Rs 323,000 crore (Rs 3,230 billion).
Recently, the National Highways Authority of India has seen increased interest for road projects, and has been able to award 21 out of 33 projects on a premium.
The premium income from these 21 projects would come in between Rs 2,500 crore (Rs 25 billion) and Rs 3,000 crore (Rs 30 billion) per year --
Clarke, Ponting flay India with double tons
J&K: Army rescues 11 govt employees trapped in snow
Malhotra knew of suspension of Kalmadi: R K Anand
Why the IMF cut India's economic growth projections
PIX: India all set to flex military muscle at R-Day parade