No takers for toll projects

November 21, 2013

Anil Kumar M, TNN

BANGALORE: The public private partnership(PPP) arrangement for levying tolls on major highways in the state has hit a roadblock with no private company bidding for the project.

While low traffic volume due to ban on mining is the main reason, the high interest rate sought by financial institutions has also discouraged toll operators.

User fee for roads was proposed when mining was at its peak. The toll revenue was meant for upkeep of roads used by mining companies to transport iron ore to ports. “Now, the state government plans to develop and maintain these roads until mining resumes. The National Highways Authority of India has all weather-roads, and toll is charged on most,” a senior official in the public works department told TOI.

The government also wanted to provide better infrastructure to industrialists who had raised the issue of bad roads at two Global Investors’ Meets. As more than 60% of the investment promises were committed for North Karnataka, more highways in that region were chosen for imposing a toll.

Of the 12 highways opened for toll, only four have attracted bids. The toll operation in the 141-km Vagdhari-Ripponpalli stretch connecting Karnataka, Maharashtra and Andhra Pradesh near Gulbarga has already started.

Companies have evinced interest in three highways – Dharwad-Alnavara-Ramanagara (SH-34, 60km), Chikkanayakamahalli-Tipatur-Hassan (SH-71, 74km) and Ginigere-Gangavathi-Sindhanur (SH-23, 83km).

Though Section 194 of the Karnataka State Highways Act, 1964, empowers the Karnataka Road Development Corporation Ltd to collect a user fee, no government has dared to toll roads over the past 48 years as they fear a political backlash.

“In the past six years, nearly 2,000km of state highways have been completed by KRDCL at a cost of nearly Rs 3,000 crore, primarily with loans from the World Bank and Hudco. The government has to repay the loans with interest and therefore found it necessary to levy a user fee,” the official said.

Toll roads

Kalmala-Shiggaon (SH-23): 77km

Hattigudur-Humnabad (SH-19): 96km

Sankeshwar-Sangam (SH-44): 73km

Aurad-Sadashivagarh (SH-34): 56km

Raichur-Bachi (SH-20): 175km

Hiriyur-Bellary (SH-19): 142km

Bagalkot-Biligiriranganabetta (SH-57): 12km

Sindagi-Kondagal (SH-16): 94km

(SH: State Highway)

Source-http://timesofindia.indiatimes.com