Cautioning against profiteering by steel makers, Union Minister Nitin Gadkari on Thursday stated he has sought Prime Minister Narendra Modi’s consideration towards 55 per cent hike in steel rates by players through the previous six months, generating projects unviable.
The road transport, highways and MSME minister also stated if the players failed to curb the practice, the government will have to alter policies and encourage option technologies in projects.
Addressing the Assocham Foundation Week on ‘national infrastructure pipeline essential for financial revival across sectors’, Gadkari also stated a GPS method for tolling is on the anvil in which toll payments will be deducted automatically on the distance traversed.
“There has been a 55 per cent hike in steel prices in the past six months. I have written to PM and Steel Minister (Dharmendra Pradhan) for a decision on this,” Gadkari, who earlier warned cement makers against cartelling, stated.
He also stated a extended-term policy is required for it as the rates hiked did not match raw material and labour rates.
“A long-term policy is needed for steel and cement manufactures… a uniform policy,” he stated and added that had the value hike been in the variety of 15-20 per cent, it could have been justified but it was abysmally higher.
“They can enhance productivity and earn profit. Else, projects will become unviable,” he stated and elaborated that steel and cement accounted for 40 per cent of the project price.
The minister stated that meanwhile, options are getting explored for steel like Malaysian ad Singapore technologies and added that earlier, when cement makers began profiteering, he had to quit one hundred per cent concrete roadbuilding and revert to bitumen model.
“This kind of attitude by players is not good for infrastructure and real estate,” he stated.
The minister also stated the GPS-primarily based method will be introducted for toll collection with Russian experience exactly where toll quantity will be deducted from the commuter account or e-wallet on the basis of distance traversed.
This will be rolled out inside two years, he stated.
He also exuded self-confidence that toll collection will attain Rs 1.34 lakh crore in the subsequent 5 years.
He also announced that the government has decided to extend viability gap funding to sectors other than infrastructure, with 40 per cent of the share by the government and the rest by developers no matter whether it be social sector, wellness or education.
Elaborating a variety of reforms to make projects viable, the minister stated tweaking of norms has resulted in savings to the tune of Rs 5,000 crore in just Zojila tunnel.
He stated a hill city is getting planned on a 19-km stretch amongst Zojila and Z-Morh tunnels.
“The 19-km area between Zojila and Z-Morh is a very beautiful area. Four-metre ice is there and it is more beautiful than Davos in Switzerland. My idea is to make it more beautiful than Davos. I want to make a new hill city there,” the minister stated.
He added that the government is arranging for that and a meeting is scheduled with Leh, Ladakh and Jammu & Kashmir governments. “A collaboration has been made with a Swiss Architect.” He stated notion is to create resorts, hill stations and conference halls there to attract international vacationers.
About electric cars, he stated a substantial investment of Rs 12.5 lakh crore is envisaged in the sector and the quantity of such cars is bound to rise.
Focus is also on taking the ethanol economy to Rs 2 lakh crore from the existing Rs 22,000 crore, to reduce on Rs 8 lakh crore imports of crude.
On NIP, he stated maintaining the PM’s vision of India becoming an USD 5-trillion economy in the subsequent 5 years, the government has launched the National Infrastructure Pipeline (NIP), beneath which it has planned to invest Rs 111 lakh crore on infra projects by 2024-25.
The NIP is a initially-of-its-sort physical exercise to provide globe-class infrastructure across the nation and boost the good quality of life for all citizens, he stated.
Highlighting a variety of essential initiatives undertaken by the government to encourage the infrastructure space such as the TOT (toll-operate-transfer) and BOT (develop-operate-transfer) models, Gadkari stated these have accomplished international appreciation from the investor neighborhood.
He stated 2,478 projects worth Rs 20.33 lakh crore are beneath the Ministry of Road Transport and Highways beneath NIP.
About the energy sector, he stated quite a few reform initiatives have been taken.
The minister also stated Indian investors would be preferred in TOT projects.