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Monetary boost for road sector

The World Bank is in a position to increase its infrastructure aid to India to Rs 80 billion ($2 billion), of which Rs 10 billion ($1 billion) will be for roads. The funds will be channelised to those states that are committed to reforming and have a good implementation record, said Anil Bhandari, transport economist at the World Bank.

The government has decided to impose a five per cent cess on petrol and diesel which will generate Rs 20 billion. This was declared by Union Surface Minister M Thambi Durai at a seminar in New Delhi on Monday.

The government would also levy a toll on all the four-lane national highways to augment future development of roads, said Thambi Durai. He added that the present budgetary support of a mere Rs 25 billion, including Rs 5 billion for maintenance, was insufficient to maintain the national highways.

Bhandari said the World Bank was willing to establish a close partnership based on shared views and consensus building rather than support projects on the basis of conditions.

He urged the government to evolve a framework for private and financial sector involvement. To this, Thambi Durai said that such a model was being prepared for privately-funded roads and highway projects.