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Government to raise funds overseas for road development

Wednesday, 23 July 2014 - 7:20am IST | Place: New Delhi | Agency: dna

The road transport and highways ministry is setting up an authority to raise near interest-free money from the global market to fund the highway construction sector, which is suffering due to paucity of funds.

The government will use the proceeds raised to provide up to 26% funds to the developer under a joint venture model. In order to boost its own revenues, the government is planning to lay network of gas pipeline, optical fibres and power transmission lines underneath the road network.

Speaking at Zee Business's ministerial conclave, transport and highways minister Nitin Gadkari said, "We are forming a corporation through which we will work in a joint venture model with the developers and provide 26% to them to implement the project."

The government will also rejuvenate the stalled highway projects. "Projects worth Rs 180,000 crore are stalled as of now. We are working on re-energising these projects, and hopefully we will be able to do it by August 15," Gadkari said.

Given the fact that developers are not coming forward for the public-private partnership projects, Gadkari said the highway projects will be implemented only on engineering procurement contract basis for the next two years. "This will provide the developers some opportunity to improve their financial position before they are ready to take up PPP jobs."

In shipping, the government is setting up dry ports and seaplanes. Seaway between Allahabad and Haldea is also in the pipeline. "Dry ports will be connected to the main ports and the container movement will be done by trains. Like airport authority, we are setting up waterways authority," said Gadkari.

The government is working on alternative fuels and is also looking at upgrading the traffic challan system in cities with population over 10 lakh. "In case of violation of traffic, a photograph of the offender will taken, which will come to the ministry, which will issue the challan to the driver. There will be no involvement of the police. A person will have to pay thrice the amount in case he approaches the court, and if the court upholds the challan," said Gadkari. A team is working on the models of Singapore, Japan, UK and Brazil.

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