The Government is developing a multi modal transportation model for the country with greater emphasis on waterways as opposed to the existing dependence on land transport in a bid to optimise logistical costs, a critical input to industry and manufacturing, Road Transport and Shipping Minister Shri Nitin Gadkari said while speaking at the CII National Conference and Annual Session 2015 on Tuesday in the capital.
The Minister further added that the PPP Model was more successful in waterways and it assumed greater significance that it remains largely under-utilised in India. “While in China around 47% of goods & services are moved via water, the corresponding percentage in India is at dismal 3.3%, including coastal shipping and inland water ways,” the Minister said. It would provide a great boost to lowering the overall logistics cost for the industry and contribute in promoting trade. In this context, five waterways have been approved by the Parliament and the objective is to create numerous multimodal hubs that would not only be efficient but also reduce pollution, he said.

Mr Nitin Jairam Gadkari, Minister of Road Transport and
Highways, Shipping addressing the session on Building India: The Infrastructure
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Mr. Gadkari in his remarks acknowledged the problems being faced by the Indian infrastructure sector and assured that the Government is taking steps like stimulating Pension & Insurance funds and promoting low cost funds from abroad with an objective of relieving this strained sector. He also stressed that the Government was committed to reduce the construction cost, by adopting international construction norms, and endorsing new technologies across the transport sector.
For the Roads sector, the Minister shared that his Ministry has taken over 25000 kms of Roads & Highways across the country to be developed on the newly announced hybrid annuity model. While the road construction at present is around 12 Kms per day, the target is to reach 30 Kms per day.
In his address, Mr. Vinayak Chatterjee, Chairman – CII National Taskforce on Infrastructure Projects – Monitoring & Advocacy and Chairman – Feedback Infra Private Limited complimented the Government for recognizing the economic multiplier effect of infra on the entire economy. He cited some of the specific importance of off – budget funding like constituting National Infra Investment Fund with a sum of INR 20,000 crores; exploring medium & long term funding options; providing greater thrust for Institutional rejuvenation by stressing upon accountability & transparency and taking steps like bringing the entire transport sector under one ministry and corporatization of major ports; ensuring transparent process for bidding; broadening the infra base by giving greater importance to sectors like railways, inland waterway, coastal shipping, mass housing and , cleaning of rivers; taking steps to re-cast the PPP and balancing the risk allocation, renegotiation, land acquisition & environment clearance.
At the same time, he also requested the private sector to abstain from practices like over bidding and gold plating et al. Going ahead, Mr. Chatterjee suggested creation of Land bank corporations and a Public Purpose Validation Commission for smooth land acquisition process; creation of a National Electricity Distribution Company and PPP Renegotiation Commission to provide greater impetus to infrastructure sector in the country.
Mr. Prashant Ruia, CEO, Essar Group, in his remarks, emphasized upon the need for Innovative financing models and supporting regulatory environment to create enabling framework and revive investments in the infrastructure sector.
