The Union Government plans to introduce third-party monitoring and electronic payment for road construction projects that are being implemented on EPC basis. The modifications are part of a new model concession agreement for EPC road projects being prepared by Planning Commission in conjunction with Union Ministry of Road Transport and Highways. The changes are proposed as the government has decided to develop national highways with total length of 20,000 km to two lanes in a time-bound manner in EPC mode. These projects are to be awarded on turnkey basis rather than current item-rate basis. Earlier, the government was also considering restricting the number of pre-qualified bidders for EPC projects. In September 2011, it invited technical bids for two projects in Uttar Pradesh to test this provision. However, the projects failed to receive adequate bids from private companies and the matter was sent back to the discussion table. The NHAI wants to opt for the EPC mode for upgradation of single lane to double lane. It has set a target of 20,000 km for double laning and plans to award contracts for 6,000-7,000 km every year.

Also, in an effort to boost electronic manufacturing in the country, the government is planning to set up an Electronic Development Fund (EDF) in 2012. The Rs 10,000 crore EDF is expected to boost electronic hardware manufacturing in the country. It will float several other funds under its umbrella to identify "deserving" research and development projects in different hardware manufacturing verticals and fund them.

All these funds will be managed by different fund managers. To this direction, the Department of Information Technology has come up with the five major recommendations, which include setting up of a National Electronic Mission, EDF, semiconductor wafer fabs, to create policies for preferential access to procure electronic goods, encourage manufacture of specific high priority product lines by providing capital grant and creation of electronic manufacturing clusters. The government is likely to support these cluster development projects with up to 50 per cent of the development cost.

Meanwhile, the Union Ministry of Coal is likely to ban captive coal miners from raising production beyond the approved level. However, it is waiting for the Union Ministry of Law and Justice's approval before notifying the new policy. Under the policy, surplus coal should be sold to CIL at price lower than production cost. As per the proposed policy, coal so transferred to CIL should be disposed by e-auction. The Coal Mines Nationalisation Act of 1973 allows coal from captive block be used exclusively for specified end-use project and production of surplus coal should not result in any undue advantage to captive block owner. In a related development, the Orissa Government has approved a proposal for imposition of Mineral Resource Rent tax on super normal profits earned by miners. The state government opines that such a tax will ensure equitable distribution of wealth generated from mining activities instead of allowing it to concentrate in the hands of a few merchant miners.

The proposal will be sent to the Union Government following the Cabinet nod. Also, the additional royalty will enable the state to invest in infrastructure and jobs to give the community a lasting stake in the prosperity of areas affected by mining. Further, by reducing the incentive for excess production from mining leases in violation of statutes and rules, it will ensure conservation of finite resources.

The Ministry of Petroleum and Natural Gas is likely to bring in a policy for shale gas blocks by December 2012. The ministry is likely to complete the mapping of the blocks by March 2012. The auction of shale gas blocks is likely to take place only after the policy is announced. In India, six basins are reported to have good potential for shale gas which includes, Cambay in Gujarat, Assam-Arakan in the North East, Gondwana in Central India, Krishna-Godavari onshore (in Andhra Pradesh), Cauvery onshore and the Indo- Gangetic basins. India's gas demand is likely to rise from 290 mmscmd in 2012-13 to 470 mmscmd in 2016-17. Against this, domestic supply will increase from 124 mmscmd to 220-230 mmscmd only.