With around 400 stuck projects in 2014, banks were facing nearly Rs 3 lakh crore worth of debt but the current ministry of road transport and highways has reportedly managed to revive several stalled projects.
Many of these aforementioned projects were stuck due to lack of promoter intent and approvals. At FICCI’s PPP Summit, Minister Nitin Gadkari reportedly stated organising a number of meetings for each project to assist their revival. Several projects had to be terminated and some projects stuck from the contractor’s end were completed by the ministry itself.
According to Gadkari, contractors, investors and bankers need to work together to ensure the success of public-private projects. As reported, he also believes that giving precedence to development of efficient public transport is the need of the hour. Further, public transit can be made environment and cost-friendly by focusing on electricity and biofuel.