<div>The difference is stark. The Roads and Highway ministry is struggling to hold on to private investors who are exiting critical highway projects across the country. Meanwhile, the Ministry of Railways is actively pursuing and engaging private investors to invest in dedicated freight corridors.<br /><br />Railway Minister Pawan Kumar Bansal seems to be getting some traction from investors for the freight corridors. The 434-km-long Mumbai-Ahmedabad high-speed corridor for instance is slated to cost Rs 63,000 crore and will require funds from private investors.<br /><br />At the Road Ministry, the mood is glum. The government’s target of building 20 km of highway every day is nowhere near being met. The current rate is barely 5 kmperday. Recently the GMR Group walked out of the Kishangarh-Udaipur-Ahmedabad NationalHighway project 16 months after it won the project in a bid as it did not get environmental and other clearances in time. The industry is abuzz with news that some other operators are contemplating an exit too as project costs are rising and clearances are not coming through. This is scaring lenders who are either suspending fresh exposure to the sector<br />or are advising companies to exit delayed projects.<br /><br />As a combination of these factors, the government has been able to award highway contracts of only about 10 per cent of its target of 8000 km for year ending March 2013. Road Minister CP Joshi may be putting up a brave face, but it is clear that attracting fresh investment from private players will be tough now.<br /><br />Issues of land acquisition and environmental clearances are common to road and rail. There are many ways in which government agencies can coordinate to offer ready to utilize land. The proposed National Investment Board is expected to take up this role for all mega infrastructure projects.<br /><br />If the government is wondering which sector to revive after its effort on retail, it has to be roads and transport. Transport policy in India has always been fragmented and uncoordinated. Railways and Road Ministry have made their policies independently. After many years, both the ministries are under the same political party. Also, the ministers in charge are pragmatic, pro-private sector and reformist. This could be the chance for the UPA government to ensure that it creates a coordinated transport policy that makes the most of private sector investment.<br /><br />Any step that shows that government is synchronizing its steps will again enthuse the private contractors and lenders. Most corporate leaders say that lack of funds is not a problem for them. The real issue is lack of bankable projects.<br /><br />Growth momentum can’t be revived only with reduction of interest rates. As industrial activity picks up, it will require an improved infrastructural environment. Consumer demand is growing in middle India. Catering to this market will require immense logistic effort that must ride on efficient rail and road linkages. Such linkages will drive down the cost of these products and contribute to inflation management.<br /><br />Government must now make a fresh push in roads and railways to transport growth to a new level.<br /><br /><em><br />(Pranjal Sharma is a senior business writer)</em></div>
