It is learnt that the Central government has given its approval to National Highways Authority of India for clearing highway projects up to Rs.500 crore, while projects above Rs.500 crore will require the Public Private Partnership-Appraisal Committee's (PPP-AC) approval.

So far, NHAI could clear projects up to Rs.100 crore and projects greater than that required approvals of PPP-AC and Cabinet Committee on Economic Affair (CCEA). Approval norms have also been eased for port and shipping projects. Now, only projects above Rs.250 crore will be referred to the PPP-AC. The earlier limit was Rs.100 crore.

Raising the limit of the NHAI's approval for highway projects from Rs.100 crore to Rs.500 crore will ensure quick approval. The government will award national highway projects worth Rs.35,000 crore in 2007-08. The government has set a target of awarding 175 contracts covering a length of 15,803 km on build-operate-transfer (BOT) basis by March 2008. The contracts are under different phases of the National Highways Development Programme (NHDP).

An investment of about $350 billion is required for infrastructure in the next five years. The government has given top priority to public private partnership (PPP) projects in roads, ports, airports and urban infrastructure.