One year of Note Ban: Flip-flops in the demonetisation story

When Prime Minister Narendra Modi announced his government's decision to revoke legal tender status of the currency notes of Rs 500 and Rs 1,000 denominations on November 8 last year, the stated objective was a crackdown on unaccounted wealth, or black money. However, as time went by, we saw the PM and other representatives of the government coming up with several aims and rationale for note ban -- from curbing counterfeiting of currency to stemming terror financing, even a push towards less-cash society. A year later, Business Standard takes a look at the many twists and turns in the story

With the government approving the Rs 5.35-lakh-crore Bharat Mala project, the National Highways Authority of India (NHAi) is gearing up to meet higher targets. NHAI Chairman Deepak Kumar tells Megha Manchanda and Jyoti Mukul in an interview that the blueprint for a separate company for expressways is being prepared. Edited excerpts:

Is the NHAI on track to achieve its targets?

Our highway award target set at the beginning of the year was 6,500 km, but with the recent Cabinet approval (to the Bharat Mala project) it has been raised to 10,000 km. That is a challenge for us and we are working on it.

Only 2,500 km of projects have been awarded in 2017-18. What makes you confident of achieving the revised target?

We have tendered 4,500 km till October 31. By December-end, 10,000 km will be tendered and these will be awarded by March. That is the internal target we have set for ourselves. This will be helped by the recent delegation of powers to the NHAI. The authority is now allowed to appraise projects and sanction some of them.

What is the size up to which the NHAI can appraise and sanction projects?

As far as EPC (engineering-procurement-construction) projects are concerned, there is no limit. All EPC projects will be appraised by a mechanism set up by the authority and will be approved by it. As far as BOT (build-operate-transfer) projects are concerned, the authorisation is up to Rs 2,000 crore.

For BOT (toll) with viability gap funding, we will follow the existing procedure of appraisal by the PPPAC (Public Private Partnership Appraisal Committee). In Hybrid-Annuity and BOT Annuity up to Rs 2,000 crore, the road transport secretary is empowered to appraise projects and the minister is authorised to take the decision. Beyond Rs 2,000 crore, projects will go to the Cabinet.

Bharat Mala is an ambitious programme totaling investments of Rs 7 lakh crore. Is it implementable? Will the private sector invest in it?

After Bharat Mala was approved by the Cabinet our award target was increased to 10,000 km and we will achieve it. Private sector participation will depend on the project and its internal rate of return. We will offer projects with 15 per cent and more IRR (internal rate of return) in the BOT mode to the private sector and below that we will look at EPC.