Posted on 09/20/2016 11:09:22 PM PDT by Tolerance Sucks Rocks
NEW DELHI: Road Transport and Highways Minister Nitin Gadkari has pledged to kick off one project every week in poll-bound Uttar Pradesh as part of the central government's ambitious development agenda for the state.
This will add up to new road projects worth Rs 1.3 lakh crore in the state, where elections are scheduled to be held early next year. Gadkari and Home Minister Rajnath Singh will formally announce the road plans on Friday in Lucknow. "I will lay foundation stones for highway projects across UP every week from now," Gadkari told ET.
"My ministry will complete highway construction projects worth (a total) Rs 2 lakh crore in five years in the state. We already have projects worth Rs 70,000 crore in the pipeline." The special road package is part of the central government's drive to draw up a list of projects that will make a visible impact on the ground in the politically crucial state.
Gadkari's Bharatiya Janata Party is looking to unseat Chief Minister Akhilesh Yadav of the Samajwadi Party, who will be campaigning on the development plank. The roads ministry will be looking to launch projects in the state before the model code of conduct comes into effect. Around 100 highway projects including expressways have been planned for UP.
"I will also launch construction work on the Kanpur-Lucknow expressway, which will cost Rs 1,500 crore," Gadkari said.
He recently held a series of meetings with field officials and engineers of the National Highways Authority of India (NHAI) in Uttar Pradesh. The minister has asked officials to speed up ongoing projects and provide a list of others that can be awarded immediately, along with detailed project reports. The ministry has declared 10 state highways as national highways and the cost of their upgradation has been pegged at Rs 8,100 crore.
Uttar Pradesh has 31 ongoing major national highway projects being constructed at a cost of Rs 19,400 crore.
Non-bank funds
Since banks are wary of lending to road projects, the government will raise Rs 2 lakh crore from Life Insurance Corp (LIC) of India, Employees' Provident Fund Organisation (EPFO), pension funds and masala bonds (rupee-denominated debt sold overseas). With banks reluctant to lend to highway projects because of legacy issues, the ministry has been exploring various options to fund the doubling of highways in the country to 2 lakh km, Gadkari said.
"Banks were lending so much money even when the developers had no land and clearances," he said.
"And today when I have streamlined the policies and made 80% land acquisition mandatory before starting projects, the financial institutions are being conservative in lending." Gadkari said LIC was willing to lend Rs 1lakh crore at reasonable interest rates.
"I have already raised Rs 10,000 crore from EPFO at below 8%. LIC is also willing to give Rs 1lakh crore. Through masala bonds also, we will be able to raise good capital at low interest rates. I am looking to raise around Rs Rs 2 lakh crore through these options," he said, adding that the money will be used to undertake construction of various expressways.
How to buy a state election, India style.
All politics is local.
Rs 2 lakh crore = 2 x 100,000 x 10,000,000 Rupees =
2 billion Rupees = about $30 million.
Rs 2 lakh crore = 2 x 100,000 x 10,000,000 Rupees = 2 trillion Rupees = about $30 billion.
Well, in defense of the BJP, this is what every major Indian political party does or has done, particularly with respect to Uttar Pradesh. It’s India’s largest state, in terms of population, and sends 80 members to parliament. All of India’s most popular Prime Ministers, including the current leader Modi, have contested and won from UP. In terms of arithmetic and symbolism, UP carries as much weight in an Indian election as California, Texas and Florida put together.
The BJP was able to get a majority of seats in the 543-member parliament because it won 73 out of the 80 seats in UP. Even winning half that number in 2019 will go a long way in ensuring Modi has a chance of retaining power.
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