In 1994, the State Government promulgated the Policy on Road Development in Rajasthan. The policy envisages the connecting of villages in areas deficient in roads, connecting panchayat headquarters, developing and strengthening the medium and low density traffic roads and construction of interstate links and bridges.
The private sector is being invited to participate in the construction of financially-viable bridges bypasses, Rail Over-Bridges (ROBs) and tunnels, etc. In such projects, investments are expected to be recovered through the levy of toll.
The rates of toll have been revised so that the investment can be recouped in 10-15 years itself - matching the maturities of usual long-term loans that are provided to such projects. The present toll rates will be increased by 30 per cent on November 1, 2000 and again by 40 per cent on November 1, 2004.
A State Road Development Fund was created in 1994-95 to provide seed money/balance investment for projects backed by financial institutions.
If the private investor cannot recover the investment made in the facility within the concession period, the Government shall repay the remaining amount in the last year of the period for which finance is arranged to the private entrepreneur/financial institution.
The government will prepare the project report including the technical details. It will also arrange for acquisition of land for construction of the project, arrange to shift all utilities and make available land free from all encumbrances.
A model concession agreement has also been formulated, the key features of which are:
The Government can enter into a tripartite agreement whereby the promoter can surrender his right to construct the project and collecting the toll in case of default by the promoter, in favour of the lending institution.
The promoter can exploit wayside land to create facilities outside the road boundary and for advertising within the road boundary during the concession period.
A three-member arbitration panel to be constituted in case of any dispute.
The private sector is welcome to invest in several projects like:
Bridges on major rivers like Chambal, Parvati, Kali Sindh, Parvan, Mahi, Luni, etc.
Bypasses to major district towns on state roads and national highways.
Construction of Rail Over-Bridges (ROBs) at level crossings and tunnels on state roads and national highways.
Improvement of state highways.
Construction of wayside facilities, truck terminals and transport nagars.
Construction of urban improvement projects and urban transportation projects.
Construction of tourism-related infrastructure facilities.
Maintain-Operate-Transfer (MOT) Scheme
Under the Maintain-Operate-Transfer scheme, the entrepreneur can recover his investment by the levy of a toll. After a fixed period of time, the entrepreneur will transfer these roads back to the State. The MOT will thus enable the maintenance and development of new roads in the State without straining the financial sources of the Government.