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Road sector needs reforms for speedy development, says highway body member

The national highways are only two per cent of the total roads in the country, but they carry 40 per cent of the total traffic. While 75 per cent of the highways are single-laned, only four per cent are four-laned, Hardeepak Singh, member (finance) of the National Highway Authority of India, said.

He addressed the India Economic Summit organised jointly by the Confederation of Indian Industry and the World Economic Forum in New Delhi.

There are constraints on investing money on roads, which the system is not able to correct, he said. He hailed the government's move to levy cess of one per cent on petrol which will raise around $ 200 million this year for constructing roads.

Model concessions agreement on inviting bids for construction of roads will be finalised within a month, he said.

Singh said the agreement being prepared by the US-based Price Waterhouse is being given final touches.

The agreement would contain details of bid procedures for inviting private sector participation in the road sector.

Already 11 minor projects are being developed by the private sector and eight were under consideration, he said.

Rakesh Mohan, director general of the National Council of Applied Economic Research, said the government should devise a mechanism to eliminate subsidies in the power sector within five years to attract private participation as well increase government expenditure on power.

While there is a general consensus that subsidies cannot be done away with at one go, efforts should be directed to complete the process in a phased manner. There would not be any resistance from the affected group if they are given power supply without any disruption, he said.

UNI

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