Toll tickets to make way for season tickets on expressways
The proposed move will bring in more participants in the highway projects. It will help developers generate long-term capital cost of the project.
By Nirbhay Kumar, TNN |
NEW DELHI: Commuters will now be able to buy a long-term pass for using expresssways in lieu of one-time toll payment. The sum, thus collected, would be used by developers to part fund the project.
“The government is planning to allow road-users to share in the capital cost of the projects through sale of long-term passes. The move would benefit both road users as well as developers. While it would facilitate hassle-free movement to people, it would also reduce the financial burden of the developers,” an official in the ministry of road transport and highways said.
The long term passes would be issued during the project construction period. Of late, highway projects have been one of the fast-growing segments attracting more and more players, including private equity firms. With the government pursuing a favourable policy for the sector by allowing 100% foreign direct investment (FDI).
“The proposed move would bring in more participants in the highway projects. It would help developers generate long-term capital cost of the project,” said Simplex Infra director Amitabh Das Mundhra.
At present, National Highways Authority of India (NHAI) is undertaking most of the country’s highway projects under various phases of national highways development project. Besides this, state governments have also shown interest in developing rapid transit system.
For example, the Uttar Pradesh (UP) government is planning to build express highways connecting eastern and western part of the state. Some of the country’s top infra majors such as GMR, DLF, Omaxe and JP Group have shown interest in building the eight-lane expressway. The project is estimated to cost nearly Rs 40,000 crore.
“The government is planning to allow road-users to share in the capital cost of the projects through sale of long-term passes. The move would benefit both road users as well as developers. While it would facilitate hassle-free movement to people, it would also reduce the financial burden of the developers,” an official in the ministry of road transport and highways said.
The long term passes would be issued during the project construction period. Of late, highway projects have been one of the fast-growing segments attracting more and more players, including private equity firms. With the government pursuing a favourable policy for the sector by allowing 100% foreign direct investment (FDI).
“The proposed move would bring in more participants in the highway projects. It would help developers generate long-term capital cost of the project,” said Simplex Infra director Amitabh Das Mundhra.
At present, National Highways Authority of India (NHAI) is undertaking most of the country’s highway projects under various phases of national highways development project. Besides this, state governments have also shown interest in developing rapid transit system.
For example, the Uttar Pradesh (UP) government is planning to build express highways connecting eastern and western part of the state. Some of the country’s top infra majors such as GMR, DLF, Omaxe and JP Group have shown interest in building the eight-lane expressway. The project is estimated to cost nearly Rs 40,000 crore.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
