Reforms in the Road Sector

• `Pathkar' abolished by all State governments and Octroi by many of them, to reduce overall transit time and help free flow of road traffic.
• Road sector declared an industry to facilitate borrowing on easy terms and to permit floating of bonds.
• MRTP provisions relaxed to enable large firms to enter the highway sector.
• National Highways Act amended to enable levy of a fee on National highways, bridges and tunnels.
• Customs duties on construction equipment reduced and procedures streamlined.

Reforms Contemplated

• Private sector participation, including foreign investors, sought in development of stretches of National highways and construction of expressways on Build-Operate-Transfer (BOT) basis for a period of 30 years.
• The traffic will be normally regulated by entrepreneurs but to ensure free and uninterrupted flow, Sales tax and Octroi barriers will not be established on the Expressways and the normal checks will be conducted at entry and exit points only.
• Development of basic facilities for the traffic enroute, provision for developing and operating highway related facilities such as motels, fuel stations, parking areas, restaurants etc, would be allowed for development.
• The land acquisition and removal of utilities to be done by the government.

The government does not intend to offer any guarantee and the entrepreneur is expected to examine the viability of the project.