IN­FRA­STRUC­TURE IN IN­DIA: THEN & NOW

Tehelka - - ASSAM - NRI FDI NHDP NHAI

stan­dard­ised doc­u­ments for award­ing ppp projects; set­ting up of an in­vest­ment track­ing sys­tem to en­sure speedy im­ple­men­ta­tion of in­fra­struc­ture projects.

Recog­nis­ing the sig­nif­i­cant role for­eign in­vest­ments could play in in­fra­struc­ture de­vel­op­ment, the Gov­ern­ment of In­dia has put in place a lib­eral pol­icy that per­mits for­eign in­vest­ments up to 100 per­cent from for­eign/ in­vestor with­out prior ap­proval in most in­fra­struc­ture projects in­clud­ing ser­vices un­der au­to­matic route. As a re­sult, many for­eign com­pa­nies have joined the league in ex­pan­sion of the in­fra­struc­ture sec­tor in In­dia.

The in­fra­struc­ture sec­tor en­joys var­i­ous ben­e­fits like per­mis­sion to sell tax-free bonds, lower with­hold­ing tax on over­seas loans, easy credit from do­mes­tic banks at bet­ter in­ter­est rates, five-year tax hol­i­day for two, three and four-star ho­tels, 100 per­cent de­pre­ci­a­tion in some sec­tors, vi­a­bil­ity gap fund­ing by the gov­ern­ment for pub­licpri­vate part­ner­ship projects and up to $20 With over 3.34 mil­lion kilo­me­ters of roads, In­dia has the sec­ond largest road net­work in the world. The road net­work in In­dia is broadly di­vided into the Na­tional High­ways and the State High­ways and ma­jor dis­trict roads. Then there are ex­press­ways and roads in ru­ral ar­eas that need to be taken into ac­count. Roads in In­dia are the pri­mary means of trans­port. They ac­count for 85 per­cent of pas­sen­ger traf­fic and 65 per­cent of freight traf­fic.

More than 50 per­cent of this net­work is built by the Gov­ern­ment. The Gov­ern­ment’s project, be­ing im­ple­mented by the has up­graded about 14,279 km length of the Na­tional High­ways to four or six lanes at a to­tal cost of 646.39 bil­lion. For im­prov­ing road con­nec­tiv­ity in the re­mote North­east re­gion, the min­istry has framed a Spe­cial Ac­cel­er­ated Road De­vel­op­ment Pro­gramme in the re­gion.

With traf­fic on roads grow­ing at 10 per­cent per an­num and ve­hi­cle pop­u­la­tion grow­ing at 12 per­cent, the po­ten­tial for growth in in­fra­struc­ture is tremen­dous. This spells the need for a fast growth of roads net­work in fu­ture. With the gov­ern­ment’s fo­cus in in­vest­ing huge amounts of funds in the road sec­tor, the fu­ture looks

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