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    Indian Road Sector - Funding: - Road Projects Are Funded Through A Variety of Sources

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    Puja Das
    The document discusses various aspects of funding, formats, policy reforms, and programmes related to the Indian road sector, noting that road projects are funded through central and state government budgets, the Central Road Fund, market borrowings, private investment, and multilateral agencies, and that there has been a focus on attracting private investment through formats like BOT toll, BOT annuity, and EPC contracts. It also outlines several policies and incentives to promote private and foreign investment in roads, as well as key central sector programmes and state sector initiatives.

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    Indian Road Sector - Funding: - Road Projects Are Funded Through A Variety of Sources

    Uploaded by

    Puja Das
    9 views5 pages
    The document discusses various aspects of funding, formats, policy reforms, and programmes related to the Indian road sector, noting that road projects are funded through central and state government budgets, the Central Road Fund, market borrowings, private investment, and multilateral agencies, and that there has been a focus on attracting private investment through formats like BOT toll, BOT annuity, and EPC contracts. It also outlines several policies and incentives to promote private and foreign investment in roads, as well as key central sector programmes and state sector initiatives.

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    Nandan Road

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    The document discusses various aspects of funding, formats, policy reforms, and programmes related to the Indian road sector, noting that road projects are funded through central and state government budgets, the Central Road Fund, market borrowings, private investment, and multilateral agencies, and that there has been a focus on attracting private investment through formats like BOT toll, BOT annuity, and EPC contracts. It also outlines several policies and incentives to promote private and foreign investment in roads, as well as key central sector programmes and state sector initiatives.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    9 views5 pages

    Indian Road Sector - Funding: - Road Projects Are Funded Through A Variety of Sources

    Uploaded by

    Puja Das
    The document discusses various aspects of funding, formats, policy reforms, and programmes related to the Indian road sector, noting that road projects are funded through central and state government budgets, the Central Road Fund, market borrowings, private investment, and multilateral agencies, and that there has been a focus on attracting private investment through formats like BOT toll, BOT annuity, and EPC contracts. It also outlines several policies and incentives to promote private and foreign investment in roads, as well as key central sector programmes and state sector initiatives.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 5

    Indian road sector Funding

    Road projects are funded through a variety of


    sources
    Central and state government budgetary resources
    Central Road Fund (CRF)
    Market borrowings
    Private investment
    Assistance from multilateral agencies like the World Bank, the
    Asian Development Bank and the Japan Bank for International
    Cooperation

    In recent years, focus has shifted from


    traditional sources towards private
    investment
    Indian road sector - Formats
    BOT (toll) - The private developer
    finances and undertakes the
    construction and maintenance of a
    highway and recovers its
    investment (plus a return) from toll
    revenues

    BOT (annuity)
    The developer EPC format
    finances and Construction is
    undertakes the contracted out to a
    construction and third party for a
    maintenance of the one time payment.
    highway and Ownership stays
    recovers its with the developer
    investment from
    annual payments by
    the
    government/granting
    Policy and Promotion
    The government provides various incentives for private and
    foreign sector investment in the roads sector. 100% foreign direct
    investment (FDI) under the automatic route is allowed for support
    services to land transport such as operation of highway bridges,
    toll roads, and vehicular tunnels; services incidental to transport
    such as cargo handling is incidental to land transport; construction
    and maintenance of roads, bridges; and construction and
    maintenance of roads and highways offered on build-operate-
    transfer (BOT) basis, including collection of toll.
    The ministry has also framed a Special Accelerated Road
    Development Programme in North Eastern Region for improving
    road connectivity to remote places in this region. The estimated
    cost of the proposal is USD 2.53 billion. The Union Budget 201213
    proposed an increase of allocation of the Ministry of Road
    Transport and Highways by 14% to Rs. 25,360 crore.
    Further, the World Bank has approved a USD 975 million loan for
    developing the first phase of the eastern arm of the USD 17.21
    billion Dedicated Freight Corridor Project in India. The Dedicated
    Indian road sector Policy
    reforms
    Standard bidding
    documents Approval of the
    new tolling policy

    Policy
    Formulation of a changes
    Reform of the
    model concession NHAI
    agreement
    Move towards privatisation through
    amendments in the acts
    Indian road sector
    Programmes
    Central sector
    projects State sector projects
    CRF projects
    National Highways
    State road sector
    Development
    projects multi-lateral
    Programme (NHDP)
    agency funded
    Pradhan Mantri Gram
    Public-private
    Sadak Yojana (PMGSY)
    partnership (PPP)
    Special Accelerated
    projects
    Road Development
    Other projects
    Programme for North-
    NABARD-assisted
    eastern Region
    projects, Hudco
    (SARDP-NE)
    projects

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