Market Overview
Rajasthan is one the few states that has successfully implemented a number of projects through private sector participation on BOT-basis.
Rajasthan has a total road length of 186,806 kms. Of these, 5,714 km are national highways, 11,751 km are state highways and 7,658 km are major district roads.

Key Segments/Products

• National Highways
• State highways
• Village Roads

Key Clusters
Integrated Industrial Parks and Industrial Model Towns

Key Players

Policy/ Incentives/ Govt. Initiatives
In 1994, the State Government promulgated the Policy on Road Development in Rajasthan. The policy envisages the connecting of villages in areas deficient in roads, connecting panchayat headquarters, developing and strengthening the medium and low density traffic roads and construction of interstate links and bridges.

Salient features of the policies are as follows:

• Creation of State Road Development Fund to provide seed money/balance investment for projects backed by financial institutions
• Non-recovery of the investments made by entrepreneurs within the concession period the Government shall repay the remaining amount in the last year of the period for which finance is arranged to the private entrepreneur/financial institution.
• Assistance in preparation of the project report including the technical details.
• Favorable arrangements for acquisition of land for construction of the project and also arrange to shift all utilities and make available land free from all encumbrances.
• Formulation of model concession agreement key feature are as follows:
  
  
  • Three-member arbitration panel to be constituted in case of any dispute.
  • Promoter can exploit wayside land to create facilities outside the road boundary and for advertising within the road boundary during the concession period.
  • Government can enter into a tripartite agreement whereby the promoter can surrender his right to construct the project and collecting the toll in case of default by the promoter, in favor of the lending institution.

Opportunities
Under the eleventh five year plan approach, the state government is committed to implement the following in coming years:

• All the villages having population 250 and above to be connected by roads.
• Strengthening and renovation of all highways and district roads.
• Works of missing link roads to connect villages to be taken up on priority basis.
• All the damaged roads to be repaired on priority basis by preparing a time bound program.
• Road facilities to be extended to the places of religious and tourist importance.
• Efforts to be made for construction of fly-over, road over-bridge and underpasses on BOT basis on the railway crossing on all NH, SH and district roads.

Strengths
Under the eleventh five year plan approach, the state government has identified its strengths to leverage on the following:

• Creation of State Road Development Fund to leverage capital for road development and to get the private sector involved. The State Government has also enacted the Rajasthan Road Development Fund Act, 2004 under which a cess on sales of diesel and petrol has been levied to create a revenue stream for the State Road Fund.
• To augment the existing road infrastructure, Government has launched 'Mega Highways/PP/Annuity Project on VGF basis', first of its kind in the country.
• Creation of 'Central Road Fund' funded by the central government to strengthen and widen the state highways and major district roads.
• Rural Infrastructure Fund has been created under NABARD to upgrade the rural road infrastructure.