As the Union government failed to draw bids under the public-private partnership (PPP) model for road projects, the Union Road Ministry has approved 14 highway projects to be bid under the engineering, procurement and construction (EPC) model to attract private investments.
The government pays a contractor a sum to build a project awarded through competitive bidding under the the EPC model. At a review of the infrastructure sector, the Prime Minister Manmohan Singh had allowed the road ministry to pursue the EPC model after private firms shunned PPP projects. Hence the Union government has approved 14 highway projects that were cited by the National Highways Authority of India (NHAI). Twenty road projects worth Rs 27,000 crore totalling 2,900 km failed to receive any bids between March last year and October under the PPP model.
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