PPP critical to revive growth momentum in roads sector: Oscar Fernandes

Road sector has been a significant driver of infrastructure development in the country and PPP has evolved as the preferred mode of implementing road projects. In recent times, however, road sector has been affected by a downturn. It is in this background, Ministry of Road Transport & Highways (MoRTH) jointly with Confederation of Indian Industry (CII) organised a Round Table on this crucial topic with Oscar Fernandes, Minister for Road Transport & Highways (MoRTH) as the Chief Guest on 20 September.
In his address, the Minister emphasised upon the need to strengthen PPP in the road sector which would act as a critical precursor for sustaining the growth momentum for the economy. He assured that the Ministry is well versed with the challenges faced by the Private sector and is working towards developing a conducive and favourable framework for the Roads sector. He cautioned the private players to avoid bidding aggressively and emphasized the need to discuss all issues with states prior to award of projects.
Vijay Chhibber, Secretary, MoRTH observed, though the government has allowed harmonious substitution of existing concessionaire, there are challenges that need to be addressed. Further, projects – PPP and EPC worth Rs. 500 crore would be appraised by MoRTH. To bring clarity in entry criteria and address other specific issues, Government has announced setting up a road regulator and there have been discussions with various stakeholders on the proposed framework. Going forward, the Ministry plans to focus on building expressways on innovative financing models. 
Sudhir Kumar, Member (PPP) – NHAI deliberated upon aggressive bidding by private players during recent years and lack of proper diligence by Lenders while financing projects. NHAI, he said, on its part would declare COD in cases where at least 75 per cent of the road is complete irrespective of contiguity of the completed sections. He stressed the need for a proactive role to be played by NHAI, Project concessionaires and lenders in the coming months.