To review investment sentiment, a committee in Prime Minister’s Office will overview infrastructure projects worth Rs. 1,50,000 crore which include Mumbai's elevated rail corridor, an expressway project and Kolkata and Chennai airport projects.
A meeting headed by Prime Minister Manmohan Singh on Friday decided the committee headed by principal secretary to PM Pulak Chatterji would ensure that key infrastructure projects in seven sectors can be rolled out in the next six months under the Public Private Partnership mode.
Targets were also set for development of key infrastructure projects including 50 new low cost airports, two new international airports at Imphal and Bhuvaneshwar and eight Greenfield airports to be developed under PPP at the meeting attended by ministers heading key infrastructure ministries.
Many of the new airports would come up in smaller towns such as Bokaro, Vijayawada and Tezpur across 11 states.
“The two new PPP ports at Sagar (West Bengal) and Durgarajapatnam (Andhra Pradesh) approved by Cabinet will be awarded,” a statement by the PMO said.
“We have taken steps to revive investment sentiment and send a signal that the government was serious on pushing infrastructure development,” planning commission deputy chairperson Montek Singh Ahluwalia said after the meeting.
The PM also emphasised a lot on ensuring fuel supply for generating 18,432 MW of additional power and rural electrification and power to below poverty line families, which had slowed down in the recent past.
“The issue on use of domestic coal and imported coal for power purchase agreements has been sorted,” Ahluwalia said, adding that 68,000 MW will be generated by power plants which came up before 2009 and 78,000 MW by projects developed after 2009.
Ahluwalia said a decision has been taken to set up an inter-ministerial group to find innovative ways to borrow money from the market to deal with internal resource crunch being faced by the Railways.
It will also create a financing cum implementation model for clearing the large blacklog of sanctioned projects over Rs. 2,00,000 crore.
“The Cabinet will soon consider a proposal to set up tariff regulatory authority,” he added.
On roads, however, there was a view of lot of slippages resulting in slow progress.
The PM asked the road ministry to ensure that road projects worth 5,000 km should be awarded in the current financial year and another 3,000 kms of road projects should be completed.
The ministry had also been asked to fasten the development of roads projects in left wing extremism hit districts of the country, where many of the awarded projects have gone for a toss because of contractors not willing to take up the project.