Bengaluru, March 31 (IANS) The central government would soon enact a new Motor Vehicle Act, replacing the 1998 law, for road safety, union Road Transport and Highways Minister Nitin Gadkari said on Tuesday.
"We will introduce a bill in parliament when the budget session resumes in April third week to replace the 1998 MV Act, which is bad in law and deserves to be thrown out," Gadkari said at an event here.
Asserting that the new law would change the road scenario across the country in terms of safety, connectivity, quality and fuel efficiency, he hoped the bill would be passed in the current parliamentary session with the help of opposition parties.
"As road, transport and inland transport sectors are the country's lifeline, the new law would facilitate their development and expansion to sustain the growth momentum," Gadkari said after laying foundation stone for upgrading two national highways in northern and southern Karnataka.
The new law has been drafted on the lines of similar laws prevailing in developed countries such as Britain, Canada, Germany, Japan and the US.
"Our ministry has drafted the bill with inputs from all stakeholders, including state governments, road users, vehicle manufacturers and intermediaries," Gadkari said.
Noting that quality road connectivity would lead to rapid socio-economic growth in the country, he said the national highways would be developed on a hybrid model through public-private partnership (PPP).
"Under the PPP model, the central government will give 40 percent of the capital and 60 percent will be invested by the private partner (concessionaire), while state governments will help in land acquisition," Gadkari added.
The ministry plans to take up 42 road projects under the hybrid model to make them economically viable and profitable to concessionaries.
"We have enough funds from ports and shipping corporations to raise loans without hedging at two-three percent Libor (London inter-bank exchange rate) per annum and use it for the road sector," Gadkari added.