The success of any highway development project depends on how the government addresses the long pending issues with the implementation of infrastructure projects. Discuss the recent Bharatmala pariyojana in this context.
Refer - The Hindu
IAS Parliament 6 years
KEY POINTS
Bharatmala Pariyojana
· Bharatmala is a new umbrella program for the highways sector that focuses on optimizing efficiency of road traffic movement across the country by bridging critical infrastructure gaps.
· This is the biggest infrastructure programme that will give priority to tribal and backward areas and border regions.
· This will help scale up public spending on infrastructure and boost job creation and growth.
· It will help to connect 550 districts in the country through NH linkages compared to around 300 districts currently.
· Bharatmala will also have a positive impact on the Logistic Performance Index (LPI) of the country.
Challenges
· 2.09 lakh crore of the 5.35 lakh crore Bharatmala investment will be funded by market borrowings.
· Over 1 lakh crore is expected to come in the form of private investments.
· Private infrastructure companies already reeling in the aftermath of aggressive past bids and leveraged balance sheets will need more clarity to be genuinely interested in such projects.
· Land acquisition reforms attempted to smooth flow of projects have also been abandoned due to opposition’s pressure.
· A new body called 3P India to reboot the earlier PPP route that had left several projects stranded is still not getting traction.
Solutions
· This is an opportune time for the government to implement the reforms suggested for reviving public-private partnerships by Vijay Kelkar committee.
· Land acquisition reforms satisfying every stakeholder’s interest must be passed in parliament.
