ASSOCHAM- Infra Survey

ECONOMY/INDUSTRY

Maharashtra has max share in road projects under operation in PPP mode: ASSOCHAM

Maharashtra has the highest share of over 22 per cent with 21 road projects worth over Rs 4,800 crore under operation in the public-private partnership (PPP) model as of August, 2012, apex industry body ASSOCHAM said today.

Besides, with a share of over 33 per cent, Uttar Pradesh has over 15 road projects worth over Rs 55,000 crore under construction in the PPP mode and Karnataka has the highest share of over 49 per cent with 53 road projects worth over Rs 25,000 crore under bidding.The roads sector in India has the highest number of projects under operation, under construction and under bidding in the public-private partnership (PPP) model as of the aforesaid period, according to the ASSOCHAM.

There are about 115 road projects worth over Rs 21,600 crore in the PPP mode under operation, while 219 road projects worth Rs 1.65 lakh crore are under construction and about 98 projects worth over Rs 51,000 crore are under bidding, according to a study titled ‘PPP in Road Sector 2012,’ released by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Besides, about eight projects in the roads sector worth Rs 191 crore got reversed to the public, there are about 11 projects worth over Rs 5,200 crore in the expression of interest (EoI) stage and three projects worth about Rs 180 crore got cancelled, according to the ASSOCHAM study.

With 11 road projects worth over Rs 4,400 crore, Tamil Nadu has second highest share in road projects that are under operation followed by Rajasthan (28 projects worth over Rs 3,400 crore), Madhya Pradesh (14 projects worth over Rs 1,800 crore) and Andhra Pradesh (7 projects worth over Rs 1,700 crore).

While Gujarat ranks second with a share of over eight per cent and has about 22 road projects worth over Rs 13,600 crore under construction in the PPP mode, Tamil Nadu with 21 road projects worth over Rs 12,700 crore under construction has third highest share of about 7.7 per cent followed by Maharashtra (7.3 per cent share) and Andhra Pradesh (5.8 per cent share).

With three road projects worth over Rs 8,100 crore under bidding, Maharashtra accounts for about 16 per cent share followed by Andhra Pradesh (with a share of about 10 per cent with 16 projects worth over Rs 5,000 crore), Gujarat (with a share of over seven per cent with 6 projects worth about Rs 3,800 crore) and Tamil Nadu (with a share of over four per cent with five projects worth over Rs 2,200 crore).“There are a total of about 881 projects worth over Rs 5 lakh crore are being carried out in the country as of August, 2012,” said Mr D.S. Rawat, national secretary general of ASSOCHAM while releasing the findings of the chamber’s study.

“While there are about 230 projects worth about Rs 70,000 crore under operation, there are about 432 projects worth over Rs 3.8 lakh crore under construction and 172 projects worth over Rs 78,000 crore are under bidding based on the PPP mode,” said Mr Rawat.“The roads sector forms almost 52 per cent in numbers and 45 per cent in value terms (457 projects worth Rs 2.4 lakh crore) of the total PPP projects that are in different stages of implementation.”

The road sector alone accounts for over 40 per cent share in total projects under construction followed by urban development and energy (share of 20 per cent each) and ports (over 11 per cent). Besides, roads rank second accounting for about 31 per cent of total projects under operation after ports sector which has a share of about 35 per cent.

With a share of almost 65 per cent, roads sector ranks on top with highest share in projects under bidding in the PPP mode, highlights the ASSOCHAM study.Land acquisition, constraints of long term funds due to prevailing economic slowdown and delay in getting forest and environmental clearances are certain significant problems being faced by the private sector players in the roads sector.

In its study, ASSOCHAM has recommended for facilitating infrastructure financing loans, ensuring speedy clearance to road projects and imparting technologically advanced, sound training facilities to enhance the capability within the road construction industry.