Investments will help India become the third-largest economy globally: Minister Gadkari
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The NDA government has kept infrastructure development as one of its prime goals on the road to becoming Viksit Bharat by 2047. In an interview with Mint, road transport and highways minister Nitin Gadkari said good infrastructure will help the country bring in capital investments and industrial development. Investments will create jobs, boost exports and raise the growth of the economy. 'It (investments) will also help the GDP to cross $5 trillion mark and (India) become the third-largest economy globally," Gadkari said.
Edited excerpts:
There has been quality improvement in the road transportation infrastructure in the country. While your stated target is 100km per day, and you have also said that these are ambitious targets, you're doing around 36km per day. Where does the journey go from here?
Frankly speaking, infrastructure is very important for the progress of any country, and it is a great pleasure for me that after 2014, Narendra Modi has taken charge as Prime Minister, and he has decided to give highest priority for development of infrastructure in the country, be it water, power, transport and communication sectors. If we have good infrastructure, we will have capital investment and industrial development. With capital investment and industrial development, we will create jobs, we will have more exports, we will have more growth, and if we are going to create employment potential, we can eradicate poverty. That is the reason for the Prime Minister's desire to make India a $5 trillion economy and the third-largest economy in the world. This is the appropriate time to formulate a policy for future development and a futuristic vision in every field. And definitely, it needs a futuristic implementation programme by which we can achieve this goal. I am confident that out of 60 years of the Congress and 11 years of the National Democratic Alliance, in our government's time, more development has been done. It is a very important achievement for our government, and we are changing the socioeconomic situation of the country. Making India a vishwaguru is our dream. And I am confident that in the course of time, we will accomplish that dream.
Coming back to my question. So, it's 36km per day today. Where do you think you will be able to take it?
The first point is very appropriate that investment of ₹1 in infrastructure is going to give the effect of three times more, as per the development, is concerned. Today, we have received three reports. One is from IIM (Indian Institute of Management) Bangalore and the other two reports are from IIT (Indian Institute of Technology) Chennai and IIT Kanpur. They clearly indicate that the logistics cost previously in India was 16% and in China it was 8%. In European and American countries, it is 12%. So, 16% logistics cost of GDP (gross domestic product), particularly for export, is not good.
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And today, I am happy that this report indicates that the 6% logistics cost in India is reduced, and I am confident that by the end of this year, it will be in single digits, that is, 9% because of new developments. Road infrastructure is very important for the development of our country. We are adding port connectivity. We are spending about ₹2 trillion on port connectivity. We are already in the process of making industrial clusters, and then providing connectivity to backward areas through a network of national highways. I am confident that roads are going to develop a new India.
You have helped to improve connectivity in various parts of the country. But, will 36km-per-day highway construction become the norm or will 100km per day construction be the aspiration?
The construction targets may be different, but the aim is to improve connectivity in the country, which helps take the economy on an accelerated path of growth. The 100km target is not a slogan. Practically, we are working towards it. Also, now that we have 25,000km of roads, we have decided to convert them into two-lane roads. Already, we have started this programme. There are also many roads in the state with a lot of traffic density issues. We are also looking for a solution for that.
We are also making Green Expressways right from Chennai to Delhi. We are reducing the distance by 320km. You go to Manali and from there to Rohtang Pass. It used to take 3.5 hours. Now it is only eight minutes to Rohtang Pass to Ladakh. Later, we will make eight tunnels and a good road network all the way up to Ladakh. From Srinagar to Katra, Jammu, we are planning 36 tunnels, out of which 23 are already completed. So, after coming to Jammu, one can take the Katra-Amritsar express highway to reach Delhi. We are connecting Delhi and Mumbai through an expressway. Also, we are connecting the northern and southern parts of the country through new alignments that will bypass Mumbai. Actually, from Surat, there will be a new green highway to Nasik, Ahmednagar, Solapur, Kurnool and to Kanyakumari, Chennai, Bengaluru, Mangalore, Hyderabad, Cochin and Trivandrum.
So, the new green express highway will provide seamless connectivity to southern cities from the northern part of the country, avoiding the congested routes along Mumbai?
This will be a new green express highway. You can drive at 120-140km per hour. You can go directly to Kurnool. After Kurnool, all the cities in South India would be connected. In the same manner, we have already successfully completed the Meerut to Delhi expressway. Previously, it was four hours, but now it is just 45 minutes. Then, Bangalore to Mysore was three hours, now it is 45 minutes. Then we are already in the process of completing Chennai to Bangalore. Presently, it is 6-7 hours. It will be 2 hours. Then Delhi to Dehradun. It takes 7 to 9 hours. It will be two hours.
When will the Delhi-Dehradun expressway start?
At the end of December.
A mass rapid transport system is also the need of the hour, with the traffic in major cities rising and increasing congestion on roads. What is the ministry doing about this?
We are presently planning to make mass rapid transport from some point near Dhaula Kuan (Delhi) to Manesar. We have already proposed 360 ropeway projects. Out of these, 60 projects will be awarded by the end of the year. Also, we are looking at electric buses with flash charging technology. A 50km-long pilot is being started tomorrow (3 July) in Nagpur. The buses under flash charging technology will have 135 seats. It will be air conditioned, with a television and executive chairs. The facility will be on par with those available in aircraft. It will run at 120km per hour, and the ticket will be 30% less than that of diesel buses.
Will there be some kind of support from government to equipment makers who roll out flex fuel engines and automobiles?
You don't need support. It's a simple thing. The entire infrastructure is available to support vehicles based on flex fuel engines. We have notified that there will be 100% ethanol at the pumps. Indian Oil has already started 400 pumps for petrol, diesel and now ethanol. So ethanol will be available. Already, 12 companies are making flex engines. And then, in place of petrol, people will use ethanol as a fuel. It is a green fuel from the farm. At the same time, it is going to have a flex engine because of which 60% of the time the car will be run on electric power and 40% on ethanol. So, the cost of the petrol mixture will become ₹25 per litre, and there will be no pollution. That's much less emission as well. A great benefit for the people.
With the prevailing geopolitical situation and the conflict situation faced by the country recently, is there a renewed focus on strengthening infrastructure along our borders?
Already, we have given the highest priority to Arunachal Pradesh, Uttarakhand, Himachal Pradesh and Kashmir. On the border side, we are making a lot of roads, tunnels and bridges. In Jammu and Kashmir, we are in the process of making projects costing ₹2 trillion. You go to Jammu and Kashmir and see any area. People will tell you what type of roads we are building in Jammu and Kashmir.
Bihar elections are around the corner. Any special plan for infrastructure development in the state?
We are spending ₹5 trillion in Bihar. We are making different types of roads there. We are totally going to change the geography of Bihar. And this has nothing to do with elections.
I cannot stop the road construction because the government is different.
Our mission, the Prime Minister has said: Sabka saath, sabka vikas, sabka prayas. On the basis of this, we are not going to discriminate against any work on the basis of caste, creed, sex or party. This is my responsibility as a member of Parliament and minister. I am not a minister of a political party. I am the minister of the country. So, we have to work for all types of people. Either they vote for us or not.
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Our responsibility is to give them good service. That is the oath that we have taken. It is our responsibility to develop our country. And I am always telling the people that politics is an instrument of socioeconomic reform and making our country economically strong, making Atmanirbhar Bharat, making India vishwaguru, making this country a $5-trillion economy, and making this country the third-largest economy in the world. That is the mission for which we are working.
About large sovereign wealth funds coming to India, the Abu Dhabi Investment Authoritys of the world and the Mubadalas of the world...
I will tell you, they are welcome. But my vision is that we want to involve the small people of India, like salaried government servants, etc. We are offering them 8.05% interest per year, and every month they will get the interest. And now in the first infrastructure investment trust (InvIT)... The InvIT share cost will be ₹100, which could become ₹140. So, that is the benefit. So, the poor... the middle class, lower middle class, service class people will get the benefit of good returns. Indians should invest in the National Highways Authority of India (NHAI) InvIT.
But this InvIT has not yet started offering its units directly to retail investors.
I have discussed this with the chairman. We are now going for the new InvIT models, and within two-three months, we will offer at least ₹25,000 crore to the common man. This is for the first time.
Will this be a new InvIT or the same one?
No, this will be a new InvIT.
One of the issues related to the quality of highways is also the poor quality of the detailed project report (DPR). What is the government doing to address this issue?
Gadkari: We have already changed the policy. It is true that because of the detailed project report, we are facing many problems. But we have made a decision to accept the DPR. Now, there is no criterion where the lowest will be accepted. Previously, the policy was to award work to the lowest bidder. But now, we will focus on giving DPR work to people who can assure quality, have previous experience in the sector, and employ the kind of people they want to.
We have seen a lot of private sector talent coming to government bodies. Are you also looking at such moves?
The prime minister has always insisted on hiring young, talented people from the private sector. We are also thinking along these lines, and we will formulate the policy for hiring people from the private sector. But private sector salaries are difficult to match. Even if an IIT graduate joins NHAI, they leave after five years. They leave the job because they are lured away by large salaries in the private sector.
The NHAI experience also counts…
We have now—by the Union Public Service Commission (UPSC) and for other systems—sanctioned a permanent cadre for the National Highways & Infrastructure Development Corporation Ltd (NHIDCL).
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To start with, we may appoint about 1,000 personnel under the cadre, especially for building strategic road projects along the border in Uttarakhand, Kashmir, Arunachal Pradesh, Himachal Pradesh and Meghalaya. Presently, we have people on contract from the Border Roads Organisation (BRO). So, ownership is very important. That's why we want to make our own cadre.
India is among the countries with the highest number of road accidents, and the highways are still not the safest. How are we making Indian roads safer?
We are committed to road safety. We are taking special measures like automobile and road engineering. The Bharat New Car Assessment Programme's (NCAP) star rating is there to ensure our cars are very secure. The second thing is our focus on all aspects of engineering. We are now making a decision regarding DPR. We will make a perfect DPR, by which we will make the routes safe. Thirdly, we want to educate people on safe driving. That is very important. We already have a lot of projects and programmes, and we use celebrities for campaigning on traffic safety. The fourth is enforcement. We have already increased penalties and fines for traffic infringements.
Manas Pimpalkhare contributed to this story.
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