Page 20 - TrafficInfraTech Magazine | Linking People Places & Progress

INFRASTRUCTURENEWS PLUS

Road Sector and Budget 2018

Dr. Sreejith Narayanan, Vice President, IL&FS
Transportation Networks Limited says that there is an

all time allocation for infrastructure this year and we

need to encourage massive participation by the private
sector in infrastructure projects

nfrastructure acts as the catalyst Pass tunnel being one them. IL&FS national highways network. It will play
to economic growth and the Transportation Networks Limited has a positive role in promoting economic
current government has been signed the contract agreement with growth, poverty reduction, rural job
addressing the bottlenecks that NHIDCL, the preliminary preparatory creation and enhance the livelihoods
I impede growth in the sector. works are in progress for constructing and livability of the citizens in the
We have observed the continued 14km, `4899Cr Zojila pass tunnel that respective regions.
support from the government in will connected Srinagar, Kargil and Leh. The enhanced budgetary allocation
terms of higher budgetary allocation In the case of road sector, as towards Pradhan Mantri Gram Sadak
towards infrastructure sector to expected, emphasis was on the current Yojana (PMGSY) will also push the rural
revive the investment cycle. This proposals instead of new big bang infrastructure by connecting markets.
year, we have witnessed all time high projects. Government intends to drive In terms of per day construction, in the
allocation; the rail and road sectors the Bharatmala Pariyojana, the program rural areas we have achieved 130km
expecting investments to the tune for the highway sector that focuses per day during FY 17 corresponding to
of Rs 1.48 trillion and `1.21 trillion on improving the passenger and 100km per day in FY15. We anticipate
respectively of the total outlay of freight movement by bridging critical PMSGSY to provide all weather road
`5.97 trillion. The higher budgetary infrastructure gaps through effective connectivity to unconnected villages in
allocation will complement the interventions for enhanced connectivity India by 2019.
targeted construction of 41km/ day of interior and backward areas and To enhance the liquidity from the
corresponding to average highway borders of the country to develop about market, the measures proposed to
construction of 27km/day at present. 35000kms in Phase-I at an estimated raise equity for the matured brownfield
Finance minister’s budget speech cost of `5,35,000Cr. This program is assets is by using Toll-Operate-Transfer
emphasized on developing connectivity likely to re-define road development in model and Infrastructure Investment
infrastructure in boarder areas India as well have a macro approach Funds (InvITs). Asset recycling model
through construction of tunnels, Zojila while planning the expansion of has been successful across the world
in various infrastructure projects; it’s
Central Plan Outlay for Road Sector (Rs. Billion) a process whereby the government,
without transferring its ownership
FY 19 ( B.E) in operational infrastructure/ road
FY 18 ( R.E) projects will allow the private sector to
undertake the long term Operations &
FY17
Maintenance obligations on payment of
FY16
a lump sum concession fees.
FY15
From NHAI’s perspective, this could
FY14 be an effective use of capital to initialize
30 230 430 630 830 1030 1230 various road projects. The quicker the
pace, the more effective the process
Particulars Total Particulars IEBR* Particulars Budgetary Support
in terms of usage of Government’s

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