In order to harness the potential of private sector in development of roads sector, the government has outlined various policy initiatives, which is generating enormous interest and optimism among private players for participation in roads sector.
Success of private sector participation in development of roads sector has been adequately demonstrated by various central as well as a state government projects. This has convinced both the government and private sector of the merits of development of roads in PPP model. Consequently, the total estimated investment for road sector has been increased from nearly INR 7,000 cores in Tenth five year plan to INR 314,152 crore during the Eleventh Five Year Plan period. In percentage terms, share of private sector in total investment on roads sector is expected to increase from 5% to 34% during the above mentioned plan periods.
In order to harness the potential of private sector in development of roads sector, the government has outlined various policy initiatives, which is generating enormous interest and optimism among private players for participation in roads sector. As per a government decision of April 2007, all new projects under different Phases of NHDP are to be taken up on Public private Partnership (PPP) by awarding them first on BOT (Toll), failing which they would to be taken up on BOT (Annuity), and failing which through Engineering Procurement Construction basis with the approval of the Government. Phases IV, VI and VII, majority of the land are yet to be awarded. All these projects are targeted to be completed by December 2015.
Government initiatives coupled with supportive policies are opening up a plethora of investment opportunities for private sector in roads sector. Thus, to facilitate companies to identify these opportunities well in time, SNP Infra Research in its capacity as a premium research organization presents this high end analytical research report. The report not only identifies the investment opportunities in road sector but also analyses if it is profitable to invest in the Indian Roads Sector. The report also discusses the financing options for investing in roads sector.