India has a vast network of National
Highways (NHs) totaling to 34,298 km connecting important
towns cities, ports and industrial centres of the country.
Industrilation of the country has induced a
traffic growth of 8-12 percent per year on many sections of
National Highways and this growth trend is expected to
continue. While the traffic on National Highways has been
growing at a rapid pace, it has not been possible for the
Government to provide matching funds
due to competing demand from other priority sectors. This has
led to a large number of deficiencies in the network. Many
sections of the NHs are in need of capacity augmentation by
way of widening grade separation construction of bypasses
bridges and expressways etc. Many bridges are in need of
replacement. The traffic movement on NHs is also hindered due
to a large number of Rail-Road crossings where road traffic
has to per force stop due to the frequent closures. The
overall scenario on the highways has led to economic losses
by way of longer turn around time for the vehicle fleeting
rising vehicle operating costs and dissipation of human
energy in the driving. This calls for urgent remedial
measures.
To motivate the inflow of resources for
the development, maintenance and management of NHs and to
improve their efficiency, productivity and quality of service
and to bring in competitiveness in providing highway services
to road users. The Government of India in consonance with its
general policy of liberalisation/globalisation of Country's
economy welcomes private investment in National Highways and
hopes that this measure would help in improvements of the
existing highways and bring in the latest technology and
improvements of the existing highways and bring in the latest
technology and improved management techniques. The users are
already accustomed to pay fee for use of bridges on National
Highways for the last two decades.
Buy Sell Products in Asian Trade Gallery,Online Trading Proposals in
Asia,Buyers Sellers in Asia
TradeHub Gallery
Buy Sell Asian Products in Trading Hub Of Asia,Buyers Sellers in Asia,Buying Selling in Asia,Buy/Sell in Asia
Product: Cardholder
Calculator Source:
China Company: Tonzex
Technology Stationery (HK) Ltd. Price:USD
$ 20 Per Unit
Product: VHS
Monitor Switch Box
Source:
China
Company: Tonetron
Electronic Limited
Price:USD $ 70 Per Unit
Product: Switch
Box
Source:
China
Company: Tonetron
Electronic Limited
Price:USD $ 12 Per Unitt
AsiaTradeHub
Search
Other highway projects have also been
awarded to private sector recently and the experience gained
in the process has been utilised in framing these guidelines.
The deficiencies in the existing
National Highways network (as on 1.4.96) and estimated
cost of their removal are as given below. These works
are required to be completed within a period of 10-15
years.
S.No.
Category of Work
Length/No.
Estimated Cost (1.4.96 prices)
1
Widening of single lane to two
lanes including strengthening of pavement
5200 km
5200 Cr.
2
Widening of 2 lanes roads (4
lane or wider)
14.000 km
42.000 Cr.
3
Strengthening of pavement (2
lane equivalent) and construction of paved shoulders
The
Function relating to development, maintenance and
management of National Highways are carried out by the
Central Government under the provision of National
Highways Act. 1956. The Act has been amended in June
1995 to permit private sector participation, relevant
extracts of which are reproduced below
Section 8 (A) :
(1)
Notwithstanding anything contained in this Act, the
Central government may enter into an agreement with
any person in relation to the development and
maintenance of the whole or any part of a national
highway.
(2)
Notwithstanding anything contained in section 7 the
person referred to in sub-section (1) is entitled
to collect and retain the fees at such rate for
services or benefits rendered by him as the Central
Government may by notification in the Official
Gazette specify having regard to the expenditure
involved in building maintenance management and
operation of the whole or part of such National
Highway interest on the capital invested reasonable
return the volume of traffic and the period of such
agreement.
(3) A person referred to in
sub-section (1) shall have power to regulate and
control the traffic in accordance with the
provisions contained in Motor Vehicles Act 1988 on
the National Highway forming subject matter of
such agreement for proper management thereof.
(4) Whoever commits mischief
by doing any act which renders or which he knows
to be likely to render any National Highway
refereed to in sub-section (1) of Section 8A
impassable or less safe for travelling or
conveying property shall be punished with
imprisonment of either description for a term
which may extend to five years or with a fine or
with both.
All policy matters relating
to National Highways are decided by the Ministry
of Surface Transport. Reference to government in
these guidelines shall generally mean the
central Government in the ministry of Surface
Transport (MOST)
The central Government has
decided that the policy of privatisation of the
National Highways will be implemented by the
National Highways Authority of India (NHAI). In
exceptional cases the Central Government may
also assign the function of Implementing Agency
(IA) to the States. Therefore reference to IA
in these guidelines will generally mean NHAI
and the State Public Works Department in
exceptional cases.
A reference to Enterprise
in these guidelines will mean the successful
bidder with whom the Government and the
Implementation Agency has entered into an
agreement for developing, maintaining and
operating any NII project.
The following principles
will generally be observed in identification
of NH projects for private investment :-
(1) Project is one of
the approved projects of MOST.
(2) Project is capable
of yielding adequate Economic Internal Rate
of Return and EIRR. (The Government
investment on the items mentioned in
Guideline 9 will be treated as zero cost
investment in the calculations for EIRR.)
Government will carry
out all preparatory works for the projects
identified for private investment and meet
the cost of following items :
(1) Detailed
feasibility Study
(2) Land for Right-of-way and en route
facilities.
(3) Clearance of the Right-of-way land:
Relocation of utility services, cutting
of trees, resettlement and rehabilitation
of the affected establishments.
(4) Environmental Clearances.
Depending upon the
financial viability of a project the
Government may recoup its investment on
the above items from the project.
Concessions Available
for Enterprise Undertaking any Project
:
(1) In the case of an enterprise (the
enterprise is owned by a company
registered in India or by a consortium
of such companies) carrying on the
business of developing, maintaining and
operating any infrastructure facility,
hundred per cent of the profits and
gains derived from such business for
the initial 5 assessment years and
thereafter, thirty percent of such
profits and gains are expected from
Corporate Tax. The tax concession may
be availed of by the enterprise in any
ten consecutive assessment years
falling within a period of twelve
assessment years beginning with the
assessment year in which the enterprise
beings operating and maintaining
infrastructure facility. The meaning of
infrastructure is given in Section
80-IA (12) (ca) of the income Tax Act
1961, and includes a road, highway and
a bridge.
Concessions Available
for Lenders / Investors
(1) As an incentive to financial
institutions to provide finance for
the infrastructure projects, deduction
upto 40% of their income derived from
financing of these investment is
available provided the amount is kept
in a special reserve.
(2) Exemption for infrastructure Funds
from Income Tax on the income from
dividend, interest on long term
capital gains of such funds or
companies from investments in the form
of shares or long term finance in any
enterprise set up to develop, maintain
and operate an infrastructure
facility.
(3) Subscription to equity shares or
debentures issued by a public company
formed and registered in India and the
issue is wholly and exclusively for
the purposes of developing,
maintaining and operating an
infrastructure facility, will be
eligible for deductions under Section
88 of the Income Tax Act 1961, which
permits deduction equal to 20% of the
amount subscribed, from the amount of
tax payable by the subscriber. In case
of such investment the limit of Rs.
60,000/- per year under section 88 has
been raised to Rs. 70,000/-
Government has
recently decided to permit
automatically Foreign Direct
Investments upto 74% equity for road
and bridge construction as a part of
infrastructure. Foreign Direct
Investment (FDI) proposals beyond
that would be considered by the
Foreign Investment Promotion Board on
case to case basis.
The concession
period comprises of (I) the
construction period which will be
project specific and (ii) the period
during which the enterprise is
permitted to levy fee and is liable
for maintaing the facility which
will be determined on competitive
bidding basis and may be upto 30
years. The concession period may be
extended suitably, to cover any
default of the Government in
fulfilling its obligations. In the
event the enterprise completes
construction of the project before
expiry of the period specified in
(I) it will be entitled to collect
user fee from traffic during the
balance period available from the
construction period at the rates
applicable for the year of opening
the road for traffic. Incase the
enterprise delays completion of the
project beyond the period specified
for construction its fee collection
period will get reduced
correspondingly.
The revision
of the fee may be allowed every
year following commissioning of the
road for traffic, lined to the
Wholesale Price Index (WPI). Such
version may be allowed twice in a
year when the inflation in the same
year jumps by four points. While
full compensation would be allowed
to offset inflation during a
specified period and the extent of
compensation may be progressively
reduced thereafter in accordance
with Bid conditions.
The
enterprise is to complete the
project within the period
specified for construction,
conforming to the standards and
specifications prescribed in the
agreement and to the satisfaction
of Implementing Agency. Any delay
in completion of the project will
be to the account of the
enterprise unless such delay can
be directly attributed to the
Government and/or implementation
Agency's. Delays occurring on
account of Government/
implementing agency would entitle
the Enterprise to an appropriate
extension in the construction
period, and/or to such other
compensation as the Bidding
conditions may specify.
The land
meant for highway construction
and the land meant for and the
land meant for en route highway
related facilities, (guidelines
20(1) and 20(2) will be given to
the enterprise on lease for the
concession period. Any
expenditure on stamp duty etc.
incurred on documentation for
lease of the land will be borne
by the enterprise. The lease for
the land will be suitably
extended in the event the
concession period is extended for
any reason. The enterprise is not
allowed to sub-lease the land to
nay one. However, the enterprise
is free to license the enroute
highway related facilities to
anyone for the period(s) limited
to the concession period.
Bids for
the projects will be accompanied
by a bid security bond which
will be of an amount equal to 1%
of the project cost as
determined in the feasibility
study.
The
successful enterprise will be
required to furnish a
performance security bond of an
amount equal to 3% of the cost
of project as indicated in the
feasibility study. Such bond
would be discharged after 25%
of the works have been
completed.
(1) In
the event of termination of a
Concession Agreement for any
reason attributable to the
Government/Implementing
Agency, the enterprise will be
compensated for all the costs
incurred by it on the project
plus interest thereon at the
rates indicated in the bidding
documents. In addition, the
bidding conditions may also
include payment of suitable
liquidated damaged to be
calculated on the basis of
pre-determined principles. The
objective of such damages
would be to provide comfort
and assurance to the
Enterprise that the Concession
Agreement would not be
terminated in an arbitrary
manner.
(2)
If the concession agreement
has to be terminated due to
inability of the enterprise
to fulfil its obligations,
the Government's liability
towards the enterprise will
be restricted to an amount
not greater than 95% of the
debt secured to project
assets that would stand
transferred to the
Government/ Implementing
Agency upon such termination.
Where necessary, the Bidding
conditions may stipulate
other forms of termination
payment as may be required in
accordance with international
norms and practices.
(1)
Highway construction as per
the scope which may be
finalised by the
Implementation Agency based
on a detailed feasibility
study.
(2)
Highway related facilities,
en route as may be
identified by
Implementation Agency in
the bidding documents :
- Restaurants
- Motels
- Rest / Parking Areas
Land for the above
facilities will normally be
acquired by the
implementation Agency. The
enterprise will be free to
license out such
establishments to anyone
for the period(S) limited
to the concession period
and enjoy revenue from them
during the concession
period.
(3)
In addition, the project
may include other real
estate development that
would help in improving
the revenue streams of the
Enterprise. Cost of land
for such facilities shall
be paid for by the
enterprise but IA may
assist in the acquisition
of the land. Real Estate
Development may include :
- transport Nagars.
- Loading / unloading
terminals for cargo.
- Waterhouses / godowns
- Vehicle repair
facilities
- Shops for vehicle
components
- Restaurants
- Hotels / Motels
- Insurance and Medical
Facilities
- Commercial &
Residential Complexes.
Real
estate development would
constitute an important
source of revenue for the
Enterprise and would,
therefore be an important
input in price
determination. As such,
it would be necessary to
firm up this components
as a part of Bid
documents.
The
layout of such
development shall be
finalised by the
enterprise with the
approval of the IA in
accordance with the
parameters states in the
Bidding documents. The
enterprise may be
required to obtain
necessary clearances
from appropriate
authorities, based on
pre-determined criteria.
In
some cases,
Implementing Agency may
opt to undertake such
real estate development
as a part of the
project. In such a
situation, the bidding
documents would exclude
real estate development
and leave it to the
Implementing Agency. In
an appropriate case,
Implementing Agency may
project actual of
income from such real
estate development and
use it for subsidizing
toll charges that may
otherwise seem
unsustainable.
Alternatively,
Implementing Agency may
assign real estate
development to a third
agency on the basis of
competitive bidding.
Depending upon the
circumstances of each
case, detailed bid
conditions would be
evolved in consultation
with the concerned
Ministries and
agencies.
(4)
Advertisement /
Hoardings
The enterprise would
be permitted to allow
displaying of
advertisements /
hoardings within the
right-of-way and
outside, in accordance
with the extant policy
of the Government on
the subject matter and
enjoy revenue from
such activities during
the concession period.
The bid conditions
would specify the
details of permissible
advertisements/hoardings
so as to enable the
bidders to quantify
the likely revenue
stream.
(1)
Completion of the
preparatory works as
outlines in guideline
9 for the identified
projects
(2) Finalisation of
Bidding Documents.
(3) Invitation of
Bids
(4) Pre-bid
Conference
(5) Evaluation of
bids.
(6) Awards of
concession.
(7) Signing of the
Agreement.
The
Implementation
Agency in the first
instance will have a
feasi8bility study
carried out for the
project identified
for private
investment. The
feasibility study
will establish the
scope of the
project, lay down
standards and
specification for
its construction,
finalise alignment
and determine
requirement of land,
prepare plan for the
re-location /
shifting of utility
services, cutting of
trees, prepare
social assessment of
the project,
identify
Rehabilitation and
Resettlement issues
carry out traffic
fore case identify
the requirement of
Highway related
facilities including
their locations,
carry out economic
and financial
viability of the
project after
assessing the
benefits to the
users and
determining the user
friendly structures
for different
funding options and
various related
aspects. The
feasibility study
will also address to
the risks of project
appropriately. The
study may indicate
the possibilities /
opportunities of
real estate
development. The
implementation
Agency will make
available the
feasibility study to
any interested
bidder and may
charge appropriate
fee for the same.
The
Bidding Documents
will inter-alia
include the terms
and conditions of
the agreement,
rights and
responsibilities of
the parties,
remedies, scope of
project and its
description,
standards and
specifications,
implementation
schedule, operation
and maintenance
standards, issues
relating to
transfer of the
project after the
expiry of
concession period
or after expiry of
concessions period
or after expiry of
the extended period
as the case may be.
The consequences of
fore closure of the
project by the
enterprise or
termination of the
agreement by
Government will be
brought out in the
bidding documents.
The preparation of
bidding documents
shall address to
various risks of
the project
appropriately by
properly allocating
them between the
parties. The
documents shall be
got prepared by the
Implementing Agency
and given to the
interested bidders
at least one month
before the closing
date for submission
of the bids after
due approval of the
documents by the
Government.
The
projects will be
classified into
the following
categories:-
Category
- I :
Railway over
Bridges,
Bypasses, Bridges
and Interchanges,
each project
costing less than
Rs. 100 crores as
per the
feasibility study
Category
- II :
All projects
relating to 4
laning and
Expressways and
the projects
relating to
Bypasses and
Bridges each
costing more
than Rs. 100
crores. As per
the feasibility
study.
For
the Category -
I projects
costing upto Rs.
50 crores, bids
will be
received in two
covers, one
cover
containing the
technical
proposal and
the other
containing the
financial bid.
The financing
bid of only
those bidders
which meet the
minimum
technical
standards (to
be made known
in advance)
will be
considered for
further
evaluation. The
evaluation
criteria will
be sated
clearly in the
Bid documents.
For
the category
-II projects
as well as
Category - I
projects
costing above
Rs. 50 crore
two stage
bidding
process will
be followed.
In the first
stage,
proposals will
be invited
from bidders
for their
short-listing.
Financing bids
in the second
stage will be
invited only
from the
short-listed
bidders. While
inviting
proposals for
short-listing
of the
bidders, the
criteria for
short-listing
would be made
known and the
bidding
documents
would clearly
stipulate the
criteria for
evaluation of
the financial
bids.
The
technical
proposals for
category - I
projects or
the proposals
for
short-listing
of the
bidders for
category - II
projects will
be evaluated
keeping in
view inter-alia
:
(a)
Experience of
the
enterprise
(b)
Experience of
the
contractors/consultants
(c) Capacity
of the
enterprise to
raise funds
from the
market.
(d) Financial
strength of
the
enterprise
(e) Quality
and adequacy
of the
organisational
and
institutional
arrangements
proposed for
implementation
The
Technical
proposal in
respect of
category - I
projects and
the
proposals
for
short-listing
of the
bidders for
the category
-II projects
will be
evaluated
and
finalised by
a Committee
constituted
by the
Implementing
Agency. Such
evaluation
will be
based on the
criteria
indicated to
the bidders
while
inviting
their
offers.
The
period of
validity of
the bid
will be as
laid down
in the
bidding
documents
for
specific
project.
The
advertisements
for
inviting
the bids
for the
category-I
projects
will be
issued in
at least
two
national
English
daily
newspapers
two
national
Hindi
newspapers
and at
least one
paper in
regional
language.
For
category-II
projects,
the
advertisements
will be
issued in
the
newspapers
applicable
for
Category-I
projects.
In
addition,
the
advertisements
will also
be issued
in India
&
abroad.
The
bids
will be
invited
from
domestic
as well
as
international
bidders.
After
evaluation
of bids
and
approval
of the
award
by the
Government
a
letter
of
acceptance
of the
bid
will be
issued
by the
Implementing
Agency
in
favour
of the
successful
bidder.
The
letter
of
acceptance
will
inter-alia
specify
the
formalities
to be
completed
by the
successful
bidder
for
signing
of the
agreement.
If the
successful
bidder
is
required
to
furnish
performance
security
or any
other
guarantee
etc..
prior
to the
signing
of the
concession
agreement
it
shall
be so
stated
in the
letter
of
acceptance.
The
draft
of the
concession
agreement
would
have
been
provided
to the
bidders
prior
to the
bidding
which
shall
inter-alia
include
the
form
of
agreement.
The
concession
agreement
shall
be
signed
by the
successful
bidders
and
the
implementing
Agency
on
behalf
of the
Central
Government
The
circumstances
such
as
wars,
invasion,
armed
conflict
or an
act
of a
foreign
enemy,
riot,
insurrections,
act
of
terrorism,
sabotage,
criminal,
damage
or
threat
of
such
act,
nuclear
explosion,
radioactive
or
chemical
contamination,
any
effect
of
the
natural
elements,
including
geological
conditions
which
it
was
not
possible
to
foresee
and
to
resist,
strike
of
exceptional
importance,
etc.
are
beyond
the
control
of
either
party
to
the
agreement
and
may
cause
genuine
failure
or
delay
in
complying
with
any
obligations
under
agreement
between
the
parties.
In
such
events,
the
Government
may
suitably
extend
the
concession
period
sufficiently
to
compensate
the
enterprise
to
offset
its
losses
caused
due
to
any
exceptional
circumstance.
The
Enterprise
may
be
required
to
take
out
an
insurance
covering
its
assets
against
the
risk
of
damage
and
providing
protection
against
loss
of
revenue
as a
result
of
occurrence
of
any
exceptional
circumstances.
In
case
of
BOT
projects
the
financial
liability
of
the
Government
would
be
limited
except
in
cases
where
the
continued
collection
of
tolls
by
the
developer
is
frustrated
by a
change
in
policy
of
the
Govt.
or
force
majeure
such
as a
law
and
order
situation.
In
such
cases
the
concession
agreement
which
is a
tripartite
agreement
between
the
developer,
the
concerned
State
Government
and
the
Central
Government
would
have
to
provide
for
a
suitable
compensation
consistent
with
international
norms
and
practices.
As
the
developer
cannot
sell
the
National
Highway
and
recover
his
assets
in
the
event,
tolling
is
suspended.
There
cannot
be
any
private
investment
in
the
road
sector
unless
such
compensation
is
agreed
to.
Details
of
the
force
majeure
clauses
that
would
be
incorporated
in
the
concession
agreement
would
be
finalised
in
consultation
with
Ministry
of
Finance
and
with
the
help
of
experts/consultants.
In
principle
such
clauses
would
be
based
on a
few
and
balanced
allocation
of
risks
among
the
participants.
In
principle
such
clauses
would
be
based
on a
few
and
balanced
allocation
of
risks
among
the
participants
reflecting
the
proposition
that
risks
would
be
allocated
to
the
entities
that
are
best
placed
to
manage
them.
It
would
also
be
necessary
to
strike
a
balance
between
the
need
to
minimise
Government's
contingent
liability
on
the
one
hand
and
providing
acceptable
levels
of
security
and
comfort
to
investors
and
tenders
on
the
other
hand.
For
the
purpose
of
proper
management
the
highway
stretch
built
through
private
investment
the
enterprise
will
have
power
to
regulate
and
control
the
traffic
on
the
highway
stretch
forming
part
of
the
agreement
between
the
Government
and
the
enterprise.
In
order
to
reduce
interference
from
other
authorities
no
sales
tax
and
octroi
barriers
will
be
established
on
the
highway
stretch
but
properly
designed
unified
checks
barriers
may
be
allowed
at
the
inter-state
borders
located
out
side
the
right-of-way
with
proper
entry/exit
layouts.
The
Implementation
Agency
will
carry
out
the
Regulatory
functions.
The
upper
limit
of
the
user
fee
applicable
for
the
initial
years
will
be
stipulated
in
the
agreement
together
with
the
fee
revision
formula
applicable
for
the
subsequent
years
and
appropriate
upper
limit
of
fees
shall
be
notified
by
the
Government
from
time
to
time.
The
enterprise
will
be
free
to
charge
loss
than
such
notified
fee.
The
Implementation
Agency
will
ensure
that
the
highway
facility
is
available
to
all
the
users
on
equal
terms
and
no
user
is
charged
more
than
notified
fee
or
harassed
in
any
manner
or
subject
to
any
unfair
or
restrictive
practices.
The
implementation
Agency
in
accordance
with
the
Concession
Agreement.
The
enterprises
will
be
obliged
to
protect
the
national
interests
like
national
security
whenever
necessary
and
required.
They
will
abide
by
various
statutory
requirements
relating
to
protection
of
environment,
safety
etc.
and
also
abide
by
the
directives
issued
by
the
Government/implementation
Agency
in
this
regard
from
time
to
time,
in
accordance
with
the
provisions
of
the
Concession
Agreement
or
the
laws
in
force.
For
the
purposes
of
transfer
the
project
will
consist
of
the
assets
built
within
the
right-of-way
and
the
junction/inter-section
areas
[guideline
20(1)
and
the
enroute
highway
related
facilities
(guideline
20(2)].
At
the
end
of
the
concession
period
the
project
in
sound
conditions
shall
be
transferred
by
the
enterprise
to
the
Government
free
of
any
cost.
The
standards
to
which
the
project
will
conform
to
at
the
time
of
its
transfer
to
the
Government
will
be
laid
down
in
the
concession
agreement.
Even
after
the
transfer
of
the
project
to
the
Government
the
Implementation
Agency
will
continue
to
the
exercise
control
on
the
highway
related
development
at
the
entry
exit
point
[guideline
20(3)
and
the
advertisement].
Any
dispute
between
the
Implementation
Agency
the
Government
and
the
enterprise
will
be
settled
under
the
provisions
of
the
Indian
arbitration
Act.
1940
which
has
been
recently
amended
for
providing
Arbitration
procedure
on
the
lines
of
UNICITRAL
ROAD
SECTOR
-
GUIDELINE ADDITIONAL
POLICY
INTIATIVES
TO
ATRACT
PRIVATE
INVESTMENT
IN
HIGHWAY
PROJECTS
Toll
rates
indexed
to
Wholesale
Price
index.
Government
/
National
Highways
Authority
of
India
authorised
to
provide
capital
grant
upto
40%
of
project
cost
to
make
the
project
viable.
However,
the
quantum
of
the
grant
would
be
decided
on
case
to
case
basis
through
competitive
bidding.
The
Government
has
agreed
to
permit
the
development
of
housing
and
other
activities
as
an
integrated
part
of
BOT
road
projects.
For
this
purpose
profits
from
housing
and
other
developmental
activities
ploughed
back
to
the
road
project
within
a
maximum
period
of
three
years,
would
be
treated
as
investment
in
infrastructure
for
tax
benefits.
Five
years
of
corporate
tax
holidays
and
deduction
of
30%
on
profits
for
the
purpose
of
tax
in
the
next
five
years,
to
be
availed
of
in
12
years
of
commissioning
of
the
project
has
been
extended
to
20
years.
External
Commercial
Borrowings
upto
35%
of
project
cost
permitted.
Import
duties
on
modern
high
capacity
road
construction
equipment
have
been
removed
totally.
Foreign
Direct
Investment
upto
74%
of
Equity
permitted.
Sharing
of
traffic
risks
agreed,
modalities
being
worked
out.
Development
of
BOT
on
Government
to
Government
basis
agreed
in
principle.
Land
required
for
housing
and
other
development
activities
forming
integral
part
of
BOT
Highway
projects
would
be
acquired
as
part
of
land
for
Highway
projects.
Import
of
bitumen
under
Open
General
Licence
(OGL)
allowed.
Specialised
equipments
allowed
to
be
imported
free
of
custom
duty.
India has one of the largest road networks in he world (over 2.9 million km at present). For the purpose of management and administration, roads in India are divided into the following five categories:
National Highways (NH)
State Highways (SH)
Major District Roads (MDR)
Other District Roads (ODR)
Village Roads (VR)
The National Highways are intended to facilitate medium and long distance inter-city passenger and freight traffic across the country.
The State highways are supposed to carry the traffic along major centers within the State. Other District Roads and Village Roads provide villages accessibility to meet their social needs and also the means to transport agriculture produce from village to nearby markets.
Major District Roads provide the secondary function of linkage between main roads and rural roads.
Responsibility for the development and maintenance f National Highways rests with the Central Government, while all other roads are the responsibility of the concerned State Govt, and the local bodies.
ROAD NETWORK
CATEGORIES
LENGTH (KMS).
Primary road system covering
National Highways (NH)
34,608
Secondary road system covering
State Highways (SH)
128,622
Other roads including major
District roads (MDR) other
District roads (ODR) and
Village roads (VR)
2,737,080
Presently, National Highways are being developed, maintained and managed under an agency system. The execution of works and day-to-day management are looked after by the Public Works Department and those in the border areas are developed and maintained by the Border Roads Organization (BRO). The Ministry of Surface Transport (MOST), Govt, of India, has the overall responsibility including planning budgeting and standardization for National Highways.
Based on growth trends, projections for future requirements if roads have been made by various agencies like the Planning Commission Ministry of Surface Transport, India Road Congress (IRC). The working group of roads for the Eighth Five Year Plan predicted that freight to 800 BTK and 3000 BTK respectively in the coming years. With an anticipated growth in GDP at 7% per annum, annual growth of road traffic is expected to be 9 to 10%.
The 20 year Road Development Plan (1981 2001) has envisaged a need of 66,000 km lone NHs and 1,45,000 km, Long SHs network by the year 2001. There is also a need of 10,000 Km long expressing network by the year 2015.
In addition, there is a need to upgrade the road system in the country by widening and strengthening existing highways, reconstruction / widening bridges and provision of user-friendly improvements. Based on the estimates made by MOST a board assessment has been made by an expert group for the needs for the development and expansion of the main roads.
The functions relating to development maintenance and management of National Highways are carried out by the Central Govt. under the provisions of National Highways Act, 1956. The Act has been attended in June, 1995 to permit private sector participation.
The National Highways Act, 1956 empower the Central Govt. to enter agreement with any person for development and maintenance of National Highways. The person may be an individual, partnership firm, company, joint venture, consortium or any other form of legal entity, Indian or foreign, capable of financing from own resources or funds raised from financial institutions, banks, open markets etc., designing and building the project and operating and maintaining it, collecting fee from users during an agreed period which together with construction period is termed as concession period. Upon expiry of the concession period, the right of the person to collect the fee and his obligation to operate and maintain the project will cease and the facility will stand transferred to the Central Govt.
NHAI was established under the National Highways Authority of India Ac, 1988 but was operational in February 1995. The Authority is an Autonomous Body with executive responsibility for the development maintenance and operation of those National Highways and associated facilities vested in it by the Ministry of Surface Transport. It is intended to take over the management of the entire National Highways on agency basis in a phased manner. The Authority has been entrusted with the execution of the highway project under ABD-III as well as OCE-III. In addition, NHAI will also be implementing other externally aided projects like World Bank-III and maintenance thereof. NHAI will also be responsible for implementation of the policy of privatization.
Foreign Direct Investment (FDI) in NH projects upto 74% equity is permitted on automatic basis. FDI proposals beyond 74% equity are considered for approval by the Foreign Investment Promotion Board on case-by-case basis.
General Section
