According to CARE Ratings agency, investment in road and bridge sector is projected at Rs 9.20 lakh crore during the Twelfth Five Year Plan period ending March 2017, as against Rs 5.16 lakh crore invested during the Eleventh Five Year Plan period ending March 2012.
Over the last decade, the governmentÂ’s initiatives towards road sector have been directed both towards formalising an adequately robust and comprehensive policy framework relating to, inter alia, private sector participation, model concession agreements and the process of awarding road contracts, as well as in facilitating expeditious implementation of projects across the country. The Government has been augmenting the allocation of funds to the road sector through the past few Five Year Plans.
Investment in road and bridge sector is projected at Rs 9.20 lakh crore during the Twelfth Five Year Plan period ending March 2017, as against Rs 5.16 lakh crore invested during the Eleventh Five Year Plan period ending March 2012.
A target of 8,800 kms of road in 2012-13 has to be met with an allocation Rs 25,360 crore. It is further expected that 1,000 km of expressways would be completed during the Plan, while land for another 6,000 km would be acquired to initiate work.
Fruition of these ambitious plans has remained a challenge given that the sector remains mired in several issues. The recent episodes of exit from two prominent developers from BOT road projects, only reinstate the issues faced by the participants.
The high quantum of projects facing delays in execution owing to regulatory hurdles, delays in grant of approvals, land acquisition issues, dispute resolution, capacity constraints and funding limitations only worsen the scenario.
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