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Road developers not keen despite govt’s initiatives

Road developers not keen despite govt’s initiatives

IndiaÂ’s highway construction policy has reached a dead end in meeting the targeted 20 km of road a day. This has been indicated as the National Highways Authority of India (NHAI) has drawn a blank in auctions of road stretches this year.

Media reports say that not a single road developer has come forward for the 20 toll and annuity project bids on offer this year. Last year NHAI managed to award about 1,093 km of roads when the target was 9,500 km. NHAI officials say the government needs to be less greedy and premium payments for projects rescheduled.

However, hopes raised for a turnaround for the road sector as the land acquisition bill has been cleared and the cabinet committee on infrastructure has been formed. The approval of the Planning Commission proposal for speedy resolution of PPP disputes placed before the cabinet will help, say analysts.

NHAI said that it is awarding EPC contracts for about 2,000 km by the year end, while is has already awarded 600 km.

One BOT project may also materialise in Maharashtra. But that is nothing compared with the target for awarding 4,000 km during the year.

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