New scheme to lure cos to highway projects

The government has drawn up a new scheme of ultra mega road projects (UMRPs), where firms will have the right to develop real estate alongside the stretches. This is to boost the viability of road products without adding to fiscal stress and attract big corporations into the sector.Each UMRP will be marked for its sheer size – Rs 20,000 crore each – and the resultant gain on cost efficiency. The developers will be free to collect fees from users of these roads for a period of up to 30 years.The y will be allowed to develop real estate projects alongside the highways.The UMRPs are proposed to be modelled on the lines of ultra mega power projects. UMRPs will also be awarded by a government agency after all clearances from the Centre and states are in place. The states' role would be crucial as they would be the prime land acquisition agency for these projects. It is said that the idea behind developing UMRPs is to cut the government's subsidy bill.