<p>The PMGSY will be modelled on the lines of the National Highway Development Programme, where private developers are roped in to design, fund and maintain the project, sources in the government told Deccan Herald.<br /><br />The PMGSY — the biggest rural road improvement scheme — has been facing criticisms of delay in execution as well as poor quality of works due to large scale corruption.<br /><br />A high-level committee on transport sector for the 12th Five Year Plan (2012-2017) headed by Planning Commission member B K Chaturvedi, which discussed the issue, has given its nod to adopt the PPP model, a sources in the commission said.<br /><br />As toll collection is difficult in rural areas, the government is considering annuity-based schemes to attract private parties to invest in the rural road projects.<br /><br />In annuity-based schemes, private developers are allowed to design, finance, build and maintain the roads in a model where the government has to pay them on an annualised basis after the completion of the project. In rural roads, the government is also proposing to fix the concession period for maintaining the project to 15-20 years.<br /><br />There is also suggestion that rural roads for a specific area will be offered to a private partner by combining several adjoining rural roads into one contract package of Rs 100 crore to Rs 150 crore. Generally rural road contracts are small which is around less than Rs 2 crore for one stretch.<br /><br />The Planning Commission will constitute a sub-committee on rural roads to finalise details of the PPP model, source said. The PPP model will be taken up only during the 12th plan period.<br /><br />In the current financial year (2011-12), the government had allotted Rs 20,000 crore for the construction of rural roads. However, many states have complained that this amount was insufficient.<br /></p>
<p>The PMGSY will be modelled on the lines of the National Highway Development Programme, where private developers are roped in to design, fund and maintain the project, sources in the government told Deccan Herald.<br /><br />The PMGSY — the biggest rural road improvement scheme — has been facing criticisms of delay in execution as well as poor quality of works due to large scale corruption.<br /><br />A high-level committee on transport sector for the 12th Five Year Plan (2012-2017) headed by Planning Commission member B K Chaturvedi, which discussed the issue, has given its nod to adopt the PPP model, a sources in the commission said.<br /><br />As toll collection is difficult in rural areas, the government is considering annuity-based schemes to attract private parties to invest in the rural road projects.<br /><br />In annuity-based schemes, private developers are allowed to design, finance, build and maintain the roads in a model where the government has to pay them on an annualised basis after the completion of the project. In rural roads, the government is also proposing to fix the concession period for maintaining the project to 15-20 years.<br /><br />There is also suggestion that rural roads for a specific area will be offered to a private partner by combining several adjoining rural roads into one contract package of Rs 100 crore to Rs 150 crore. Generally rural road contracts are small which is around less than Rs 2 crore for one stretch.<br /><br />The Planning Commission will constitute a sub-committee on rural roads to finalise details of the PPP model, source said. The PPP model will be taken up only during the 12th plan period.<br /><br />In the current financial year (2011-12), the government had allotted Rs 20,000 crore for the construction of rural roads. However, many states have complained that this amount was insufficient.<br /></p>
