Road & rail projects on fast track

The re-elected UPA government appears keen to speed up construction of highways and rail freight corridors in its current term as a way to boost the slowing economy.

The development of 40,000 km of roads at a cost of Rs 60,000 crore is on the government���s priority list, that also includes rapidly increasing India���s capacity to produce railways rolling stock.

The Railways has a target of investing Rs 2,30,000 crore during the 11th Five Year Plan. It expects to complete gauge conversion on 4,900 km of rail tracks and double 1,800 kms of rail lines during this period. Another 1,100 km new rail lines will be laid down simultaneously.

Construction of the double-line eastern dedicated freight corridor has already begun. ���Dedicated freight corridors would increase railways��� share in the movement of freight and bring down logistics cost,��� a railways ministry official, who did not wish to be identified, said.

Meanwhile, the government has decided to construct and upgrade 40,000 km of highways on annuity (fully-funded by the state) basis.

���It would be necessary to plan for the development of these roads as part of the third stimulus package to the economy on the basis of annuity contracts,��� a surface transport ministry official said. National Highways Authority of India (NHAI), the nodal agency for highway development in the country, is expected to award 35 new road projects in the current financial year. It managed to award only eight projects in 2008-09 against a target of 60.