INVESTMENT BY PRIVATE SECTOR FOR DEVELOPMENT OF ROADS

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Rajya Sabha

Indian and foreign private sector companies have shown interest for investment in development of National Highways. During the last 3 years the number of projects awarded to the private sector companies are as under:

1999- 2000 - 1

2001. - 2

2002. - 10

Following incentives have been offered to attract the private investors in the development of road infrastructure.

1. 100% tax exemption for 10 years to be availed within 20 years.
2. Concession period allowed upto 30 years.
3. Duty free import of major modern high capacity equipment for highway construction.
4. Government to provide land at no cost and free from all encumbrances.
5. Government to provide capital grant upto 40% of the project cost to enhance viability, on a case-to-case basis.
6. National Highways Authority of India permitted to participate in equity of BOT projects upto 30% of the total equity.
7. Foreign direct investment allowed upto 100%.

This information was given by the Minister of State (Independent Charge) for Road Transport and Highways, Major General B.C. Khanduri, AVSM (Retd.) in a written reply in the Rajya Sabha today.