ROM, siseaiaas FeK NO. 19 Aug, 2019 13:41 P OBL Nripendra Misra Principal Secretary to Prime Minister August 17 2019 Wat &1 06025 | Dear Shri Ranjan, i Various suggestions have been received regarding sector under your charge, @ copy of which is enclosed herewith You may kindly examine the suggestions from the point cf view of adoption/feasibility and send your response by 23" August, 2019. With regards, spt. Yours sincerely, "4 f a Enel, As above. i Shri Sanjeev Ranjan Secretary : Ministry of Road Transport & Highways hh S40] New Delhi. Chobnsen iyi)” yer Hat arte, arse seller, aE feeet-110 O11 . Pave Ministen's Orrice, Sours Buocx, New Deuw-330 024 most wag ‘Tex, 23013040 Fax-23017475, 1 te wep) |W) a Ce ee } : cau (om) 1 SMDAY TS Upon de ao vetFROM FAK NO. 19 Aug. 2019 13:42 P 62 Roads Issue; NHAI totally log jammed with unplanned and excessive expansion of roads declared as "National Highways (NH)" or “NH in principle’. Average stretch of these roads exceeds over 1.9 lalkh Kms, NHAI mandated to pay several times the land cost; its construction costs also shooting up. Road infrastructure has become financially unviable; private investors and construction companies withdrawing from green field road projects. Model of hybrid annuity and EPC mode, with all investment made by Government, is unsustainable, Reform needed. 1, Reorganizing NHAlI and its portfolio of roads: a) NHAI to be transformed into a Road Asset Management Company ' b) National Highway Grid blueprint to be prepared ad sanctioned for all roads that actually need to be taken up as NHs until 2030 2. NHAI to relook at Commercial Orientation of projects: | a) To recognize each road stratch project as a project and create an SPV for it- will give idea of financial sustainability /unsustainability of | project b) For each financially unsustainable project to take a conscious decision thereafter on how to meet the gap, If project is to be taken up ©) Viability gap funding by the government for these projects, if ; considered, should be done upfront a) Once structured as a financially viable project, it can be bid out on BOT basis. . ¢) NHAI to stop constructing road projects | 3, Aggressive Monetization of NHAI assets: a) NHAI to structure all existing completed or on-going projects on this principle and also as financially viable SPVs b) All these projects to be monetized by giving out of ToT model or as | INVITS sekuiors