Private road firms now investing in Bihar
Posted: 13 Nov 2010 06:52 PM PST
NAGPUR: Encouraged by positive developments in Bihar, private companies are investing in the state’s roads for the first time in its history. While Maharashtra, Karnataka and other states had invited private investment in road sector in 1990s, the Bihar government has done it only now, apparently confident that users would pay toll tax. The investors’ confidence has increased due to improvement in law and order situation.
Until a few years ago, it was a common joke that there were more potholes than roads in Bihar. The situation has changed a lot in the last few years.
Deputy general manager of Bihar state road development corporation (BSRDC) G C Mishra told TOI on sidelines of Indian Roads Congress (IRC) session that state was going in for private investment in a big way.
“A Hyderabad-based firm will construct a bridge across Ganga river at the cost of Rs 1,600 crore. This is the first public private partner partnership (PPP) project in our state. It will be constructed 50 km downstream from Patna. It will reduce traffic congestion in the capital. This project has opened flood gates of private investment in our state and many firms are evincing interest.”
Asked about readiness of users to pay toll tax, Mishra said that an extensive survey had given positive reports.
The Asian Development Bank (ADB) has sanctioned $420 million (about Rs 1,900 crore) to Bihar and another $300 million (about Rs 1,350 crore) is in the pipeline. The bank, in its review meeting in Indore on October 25, had rated Bihar first in terms of physical performance in road sector.
The DGM said that BSRDC had built 820 km with the first installment and another 300 km was planned using the second installment. “The budgetary allocation has gone up many times in the last few years. A third of the budget was earmarked for roads in 2006-07. It is 31% in 2010-11. In fact, the state government is maintaining national highways without waiting for central assistance,” he said.
Turning to his organisation, Mishra said that BSRDC was constituted in 2009 and in its very first year it paid a dividend to the state government.
The BSRDC official said that improvement in law and order situation and crackdown on non-performing contractors had helped a lot. “Earlier, engineers used to work in an atmosphere of fear. This obviously had an effect on development,” he said. “But things are much better now.”
Source: http://timesofindia.indiatimes.com/city/nagpur/Private-road-firms-now-investing-in-Bihar/articleshow/6921439.cms
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment