The National Highways Authority of India (NHAI) is likely to spend at least Rs 9,000 crore in construction of two-and-half lane highways and this would be a breather to highway developers who were facing acute equity crunch.
To this effect the Cabinet is expected to clear a proposal soon to start construction of at least 3,000 km highways with complete government investment. The cabinet will also consider awarding the maintenance and tolling contract of at least 3,000 km of highways already built by NHAI.
With regard to the proposal of 3,000 km highway construction, these stretches will be undertaken in engineering, procurement and construction (EPC) mode that would ensure projects are completed in time and there is no cost-overrun.
An official in the Highways Ministry said that this will come as a big boost to companies which want to bag contracts to build roads. They don’t need to wait for 15-20 years to recover the investment and make profit. In this case their payment would be linked to the progress of work.
Contact: National Highways Authority of India
Tel: +91-011-2507 4100
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