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Govt's measures to boost infrastructure

In a bid to boost productivity of infrastructure industries, the Cabinet Committee on Infrastructure has raised the investment approval powers of the ministry of surface transport to Rs 5 billion.

For national highway projects, the ministry's power have been enhanced. At present, the public investment board and Cabinet Committee on Economic Affairs have to clear projects costing more than Rs 500 million.

The Cabinet Committee on Infrastructure has approved that the ministry of surface transport could clear projects up to Rs 2 billion and above, and up to Rs 5 billion in consultation with the expenditure department of the ministry of finance.

There is a shortfall in the availability of bitumen especially in the multigrade variety. It has been agreed to put bitumen in the open general licence and the rate of duty is to be fixed by the ministry of finance.

In principle, a decision has been taken to provide traffic guarantees to investors and lenders who take up highway development on the build, operate, transfer basis. The details and modalities have to be worked out.

The National Highway Authority of India has proposed raising long-term road bonds.

For development of certain sections of the national highway, memorandums of understanding have been signed with certain foreign countries, especially Malaysia and Singapore.

Major ports are looking at the possibility of tying up with some of the modern ports abroad. While these tie-ups are good, the ministry of surface transport has been directed to frame guidelines and principles within which joint ventures and collaboration can be entered into.

UNI