Tarun Sharma Moneycontrol News
Union Minister Nitin Gadkari's hands might be full - with projects like Bharatmala, Clean Ganga and introduction of electric vehicles. But he is optimistic about meeting his targets. In an interview with Moneycontrol, the Minister for Road Transport & Highways, Shipping and Water Resources, River Development & Ganga Rejuvenation, shares his roadmap and vision.
Q. The transport ministry has used more than 60 percent of the funds allocated for this fiscal. What is your requirement for the next fiscal?
We are demanding Rs 25,000 crore more for the next fiscal year. On the spending front, we had spent only Rs 40,000 crore during my first year. This year, we are spending nearly Rs 70,000 crore. However, from next year we expect spending to be around Rs 1,40,000 crore and for fiscal 2019-20, we are expecting it to be around Rs 1,60,000 crore. The higher spending is mainly due to a significant rise in price of land acquisition. So we are requesting Finance Ministry to allocate Rs 25,000 crore more this fiscal year.
Q. What is status of Bharatmala project? What are the challenges you are facing in implementation?
We are not facing any hurdles related to the Bharatmala project. It is a project worth more than Rs 7.5 lakh crore Work on that project requiring investment of Rs 2.5-3.5 lakh crore will start in 2018-2019 and we are optimistic about this project.
Q. Where will work on Bharatmala start first?
In this project, land acquisition work has been already started in 28 ring roads, 45 expressways. I will be reviewing the status of Bharatmala project this week and will prepare a detailed project report for this work. I can confidently say that work is progressing at a rapid pace.
Q. Another project which is close to your heart is Clean Ganga. What is the status there?
We are implementing 97 projects for curbing pollution in Ganga. More than 70 percent of the Ganga is polluted by ten cities. Apart from 97 projects, there are 55 state projects also for the purpose of cleaning it. However, these 55 projects mostly are closed or in an incomplete stage. For these unfinished projects, we have prepared DPR and work order will be released before March. Out of 97 projects, work has started in 85. Not only Ganga, we have started cleaning Yamuna and now we are focusing on cleaning small rivers also. I can say confidently that 80 to 90 percent of our Nirmal Ganga dream will be completed before 2019.
Q. When you were a minister in the Maharashtra government, you made the Mumbai-Pune expressway. However, road maintenance is turning out to be an expensive proposition. Are you working on any particular policy for using geo-plastics in road construction?
There is no such policy and no plan also in the near future. On geo-plastics, contractors use it mainly in the north east region. We are in the process of forming a technical committee for new technology and innovation in the road segment. Any contractor who wants to implement new technology, has to send it to the committee and is the committee is convinced, he will be allowed to implement it.
Q. For electric vehicles, you have set a target of 2030. Don’t you think it is an ambitious target?
In my view, electric vehicles will be available easily in the market in the newt two years. In Nagpur, there are 200 taxis running on electric mode and 800 more cars are also set to come on road. We have set up 20 charging stations in the city and buses are also running on electric mode. On 30th January, a automobile company is launching electric bikes. Our government is prompting the use of ethanol and methanol as alternative to petrol and diesel. These are cost effective and will also help in binging down the level of pollution.
Q. Don’t you think such project needs fiscal stimulus from the government in the initial years?
We have already given fiscal incentives to these projects through tax cuts. Recently, the GST Council has cut down taxes on bio-diesel or ethanol vehicles from 48 percent to 12 percent. After reviewing all the parameters, I can say that in next two years, use of electric and ethanol products will be high. It will also have a positive impact on crude oil import.
Q. You spoke about ethanol. Can you tell us how are you going to increase ethanol blending in petrol and diesel?
We are manufacturing second generation of ethanol. Earlier, ethanol used to be made by molesys. Now we are making it by using cotton straw, wheat straw and bamboo. In NCR, there is a major problem of burning of farm waste. We are planning to make ethanol from that also. One tonne farm waste can make 280 litre of ethanol. For this purpose, petroleum ministry has prepared a Cabinet note and it is pending for approval. This will give employment to 50 lakh youngsters and more than a thousand industries will be set up. More importantly, around 2 lakh crore of crude import will be saved.
Q. What is your view on cement pricing? Do you think there should be a regulator for the sector?
Most of the time, cement companies do not have a valid reason to increase prices. We can think about a regulatory authority who can keep an eye on the pricing of cement. I have appealed to cement sector that when diesel price has not increased much and neither royalty prices have increased, then don’t increase cement prices significantly. So, it is not appropriate on their part to jack up price of cement.
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