Union Minister Nitin Gadkari said on Saturday that the Center is considering a plan under which it will take over state highways with high traffic densities for growth. Gadkari, who is in charge of the portfolio for highways and road transportation, stated that the Center will widen a state highway into a four or six-lane road and collect tolls for 25 years before returning the asset to the state. Speaking at a conference held by the Association of National Exchanges Members of India (ANMI) today, Gadkari said, " We will take that highway from the state government (and) will collect the toll. "
The minister, who has built a reputation for constructing mega road projects across the country, exuded confidence that the money invested for a particular highway's expansion into a 4-6 lane carriageway can be recovered in 12-13 years itself.
He, however, did not offer any elaboration on the evinced plan, like if the Centre is in talks with any states or the overall outlay under this, or if such an activity will be undertaken by partnering with a private entity. The minister listed a slew of projects being undertaken, including 75 access-controlled expressways across the country, which will ensure faster movement of goods and people across the country.
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He said there is a plan underway to build an expressway between Mumbai and Bengaluru, which will ensure that one can drive from the capital of Maharashtra to that Karnataka in five hours.
Addressing the investors in the audience in his virtual address, Gadkari said there are a lot of opportunities in the road sector courtesy of the works undertaken and the government's plans.
The internal rate of returns on such investments is very good, the minister said, adding that the only aspect he is worrying about at present is the currency volatility which make the landed cost of foreign currency very high due to hedging.
The minister also said that a lot of global companies have set up a manufacturing base in India, and the government believes the overall revenue of auto companies is expected to double to Rs 15 lakh crore in the next five years against Rs 7.5 lakh crore at present.
The government is also very focused on creating public options and sees the number of buses going to 10 lakh from the present 1.5 lakh, Gadkari said without giving a timeline for the same. Gadkari said there is also a plan to make 'bus ports' on the lines of the airports, where the Centre will develop bus depots located on prime plots into swanky facilities with lodges and restaurants.
With inputs from PTI
