Union ministry announced two big decision yesterday. Government announced almost Rs 7 lakh crore Bharatmala Project for push for infrastructure, specifically to the road and highways. Narendra Modi led Government also announced recapitalization of banks.
Under Bharatmala Project, government will cover about 83000 Kms of which 35000 Km will be covered in Phase I. Also the Ministry is aiming to get this project off the ground by December 2018.
Nitin Gadkari is confident to close this financial year at 30 km per day and expect to reach 40 km per day by end of FY-2018.
7-Lakh Crore worth Bharatmala Project would get funds via CRF funds, budgetary allocations and monetization of projects. NHAI bonds could be also one way of fund. NHAI projects are economically viable and has a AAA rating.
Government is aiming to complete the project by 2022. Bharatmala project is the second largest highways construction project in India after National Highway Development Programme (NHDP). NHDP connects border areas, improves International, port and costal connectivity and also developing highways to connect main economic and commercial hubs.
Total area under Bharatmala-
Under Bharatmala Project, it includes 9000 Km economic corridors,
6000 km of inter-corridor and feeder routes,
5000 km national corridors,
2000 km border roads and international connectivity,
2000 km coastal roads,
800 km greenfield expressways
All these will be covered in the first phase. It will be implemented from 2017-18 to 2021-22. It also includes 10000 km of balance road works under NHDP. It will cost estimated Rs 5,35,000 crore.
Around 5,000 km national corridor will be taken up in Phase-I at an estimated cost of Rs 100,000 crore, 26,200 km economic corridors, 8,000 km inter-corridors and around 7,500 km of feeder corridors have been identified under Bharatmala.
States covered under Bharatmala-
Bharatmala Project will start from Gujarat. Then it will go through Rajasthan and Punjab and traverse through Jammu & Kashmir, Himachal Pradesh, Uttarakhand, UttarPradesh, Bihar, West Bengal, Sikkim, Assam, Arunachal Pradesh, Manipur, and then Mizoram.
The union government is aiming to low the traffic jams with these new roads. Also it is expected to increase vehicle speed and decrease supply chain costs.
The newer roads are expected to increase the speed of vehicles and decrease supply chain costs from the current average 18 percent to 6 percent.
Gadkari said the programme envisages improving the efficiency of the National Corridor (Golden Quadrilateral and North South-East West Corridor) by decongesting choke points through lane expansion, construction of ring roads bypass/elevated corridors and logistics parks at identified points.
“Bharatmala will give the country 50 national corridors, compared with six at present. Seventy to 80 percent of freight will move along the national highways against 40 percent at present. The programme will help connect 550 districts through national highways, compared with around 300 districts at present,” he said.
The Bharatmala project will generate huge direct and indirect employment in construction activity, Gadkari said.
The project is aimed at pushing economic activity and generating at least 32 crore man-days across the country in the next five years.
This is perhaps the biggest government announcement before the upcoming Assembly elections. According to the ministry’s estimates, construction of 10,000 km of highways annually has the potential of generating four crore man-days and the mega-highway development programme. The construction will be billed via several routes including debt funds, budgetary allocation, private investment, toll operator transfer model etc.
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