A few days ago, there were reports that the Government is planning to privatize Select State Highways. The Contracts can collect Tolls on these Highways. While the condition of the roads will improve drastically with this decision, the idea of collecting Toll will cost a huge political capital.
The government has prepared the ground for implementing a Toll for 18 roads covering 1,307 kilometers in the first phase. The majority of the roads are rural and Agency areas. The Pilot Project of this model is yet to begin.
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Meanwhile, the Government has come up with another innovative idea to develop roads in sixteen cities under the PPP Model.
Comprehensive project reports are being prepared for the development of 642.90 kilometers of roads in the first phase in 16 municipal corporations.
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A maximum of 253 kilometers of roads will be developed in Visakhapatnam.
The contractors who win the tenders will invest in the development of the roads and will receive income in various forms over a period of ten years.
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The income generated from billboards on both sides of the roads, in the middle of the roads, and from vehicle parking lots will go to the contractors.
They will have the right to collect all other fees. Along with the development of the roads, the contractors will also be responsible for their maintenance for ten years. They should ensure that there are no potholes anywhere.
This is a better idea than imposing a Toll. The roads will be good, the people will not be burdened, and there is no chance of a bad name for the Government.
But the problem is that implementing something like this for Rural and Agency area roads is not easy because the chances of advertising are less.
But the Government should explore some ideas like this for such roads as well and avoid imposing tolls on the people.
Many big players are trying to penetrate mass markets with their brands. A competent agency can create such advertising opportunities. Even though the revenues will not be on par with the cities. The Government can give viability funding for the rest and drop the idea of imposing a toll.
