Union Road Minister CP Joshi informed a news agency that the ministry cannot attain the target of awarding 9,500 km highways projects in 2012-13 because of several issues.
The main issue cited by the minister for missing the target is the impediments in financial closure. Road developers have time and again raised the issue of a conservative and rigid approach by banks in providing loans to the highways projects with the Road Transport and Highways Ministry.
Delay in environment clearances has also impacted implementation of projects. The ministry as well as the National Highways Authority of India (NHAI) are already facing problems because of major infrastructure firms pulling out of projects.
Private infrastructure companies GVK Power and Infrastructure and GMR Infrastructure announced termination of their contracts with NHAI in January for building a major highways in Madhya Pradesh, Rajasthan and Gujarat.
Meanwhile, the minister informed that his ministry would discuss the proposed Road Regulatory Authority Bill during the Parliament break within itself.
In his budget speech, Finance Minister P Chidambaram announced setting up of a Road Regulator as the road construction sector has reached a certain level of maturity but continues to face challenges, including financial stress, enhanced construction risk and contract management issues.
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