A record length of 7,957 kms of roads was awarded for strengthening/upgradation and improvement during the financial year 2011-12, the Union government has stated.
Response of private sector to Build-Operate-Transfer (BOT) projects in road sector was overwhelming till 2011-12, but recent response during the current financial year has been comparatively subdued, said Minister of State of Road Transport and Highways, Jitin Pradada in Lok Sabha on August 27.
The primary reason is lack of availability of finance. Many banks have reached the sectoral ceiling prescribed by the Reserve Bank of India. Infrastructure developers are finding it difficult to raise equity.
Delays are also due to delay in land acquisition process and in obtaining environment and forest clearances. Such delay in the actual start of the project adds to the expense of the project cost due to cost escalation and idling of various resources like manpower, plant and machinery etc. Government has taken a number of steps to minimise procedural bottlenecks and delays.
Ministry of Road Transport and Highways has taken up the matter with all the State Governments emphasising the need to streamline the process of land acquisition and utility shifting etc, by constituting high level committees under the Chairmanship of the Chief Secretary of the respective States.