The Hindu : Tamil Nadu / Chennai News : "Centre has initiated discussion on road sector projects"

Online edition of India's National Newspaper
Friday, Aug 18, 2006

Tamil Nadu

Tamil Nadu - Chennai

"Centre has initiated discussion on road sector projects"

Special Correspondent

States can make changes in model concession agreement

A LIGHTER MOMENT: IIT-Madras Director M.S. Ananth and Malaysian Minister for Works S. Samy Vellu at the inauguration of an expo-cum-seminar in Chennai on Thursday. — Photo: ShajuJohn

CHENNAI: The Centre has initiated a discussion on implementation of road sector projects to be carried out by States in the public-private partnership (PPP) mode, Highways Secretary K. Allaudin told a seminar on surface transportation here on Thursday.

Noting that the Centre had circulated a model concession agreement among States, Mr. Allaudin said it was for the States to make suitable modifications in the agreement. These could cover any category of roads such as major district roads (MDRs) or State Highways.

He was responding to a query on attracting investment from the private sector to road projects at the seminar organised here by the Tamil Nadu State Board of the All India Manufacturers' Organisation (AIMO) and the Indian Institute of Technology-Madras (IIT-M).

Mr. Allaudin said under the World Bank-assisted Tamil Nadu Urban Development Project-III, schemes to the tune of Rs. 700 crore were to be executed in the Chennai Metropolitan Area in the next three years. The Bharat Nirman programme will cover 4,120 km of roads. A ring road would be laid in Madurai at a cost of Rs. 70 crore.

R.R. Doddihal, Chief Engineer, National Highways, Karnataka Government, said banks of machinery/equipment could be formed. Manoharan, Superintending Engineer of roads and bridges of the Kerala Government's Public Works Department, said his State, also known for inland navigation, had unique transportation needs.

Earlier, inaugurating the seminar, Malaysian Minister for Works S. Samy Vellu emphasised the importance of PPP. A consortium of Malaysian and Indian companies could be formed for implementing road sector projects with the Indian Government providing its contribution.

Director of IIT-Madras M.S. Ananth referred to the institute's proposal to build a research park.

He said 30 companies had expressed willingness to take part in the project. The country needed at least 150 such parks.

K. Ramchand, president and chief executive officer, Infrastructure Leasing and Financial Services, called for establishing a regulatory framework for the road sector.

K.E. Ragunaathan, chairman of TNSB of the AIMO, and Amit Kumar Sen, president of the AIMO, gave an overview of the theme of the meet.

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