Builders allowed parallel bids for failed PPP highway projects

Will be given choice of govt and privately funded modes to put highway projects that didn't get bids under PPP model

To revive investment in the road sector, the Union government has come up with a new bidding strategy. The same stretches of national highway projects are now being offered in both government and privately funded modes. The National Highways Authority of India (NHAI) has invited rebids for four projects under the build, operate and transfer (BOT) mode, even as bidding under the EPC (engineering, procurement, construction) mode, where the government funds a project, is on simultaneously. These projects were earlier put up for bidding in PPP mode but found no takers. Subsequently, decisions were taken to award these projects in EPC mode. "About four projects have been rebid in PPP mode as some investors have shown interest. But, decisions were already taken to award these projects in EPC mode; so, now bidding in both modes is running simultaneously," a senior NHAI official told Business Standard.

The idea is to save time in awarding projects, as there have been delays because of there being no takers in the previous round of bidding, the official added.

A few foreign investors, including IJM Corporation Berhad, a leading construction group in Malaysia, have shown interest in certain projects - Eastern Peripheral Expressway worth Rs 4,489 crore for a stretch of 135 km, Bathinda-Amritsar worth Rs 1,899 crore for a stretch of 175 km and Ambala-Kaithal for about 95 km worth Rs 878 crore.

NEW STRATEGY

Dual course
NHAI has invited rebids for 4 projects under the build, operate and transfer (BOT) mode, even as bidding under the engineering, procurement, construction (EPC) mode is on simultaneously

The target
In the current financial year, NHAI has awarded 1,138 km of road projects, of which 511 km has been awarded under BOT mode. The target is to award 3,700 km through PPP and 2,300 km through EPC
Good times gone
Developers bid aggressively during 2010-2012, when the govt awarded a record 147 road projects worth Rs 1.47-lakh crore
Green hurdles
Issues related to environment and forest clearances and land acquisition have come in the way of projects. Projects worth Rs 1,80,000 crore are stuck because of such problems
Among the biggest projects that has been rebid is the Eastern Peripheral Expressway, to be built between Sonepat in Haryana to Palwal in Uttar Pradesh, bypassing Delhi. The bids have again been called under BOT mode as one unit. For EPC, the project has been divided into three packages, which will further be divided into a total of six parts. In the current financial year, NHAI has awarded 1,138 km of road projects, of which 511 km (three projects) has been awarded under BOT mode of public-private partnership, according to another NHAI official. This fiscal year, the target is to award 3,700 km through PPP and 2,300 km through EPC mode. Developers had bid aggressively during 2010-2012, when the government awarded a record 147 road projects worth Rs 1.47-lakh crore. At that time, India's economic growth was much higher but it slowed subsequently and input and inflationary costs have gone up since, due to which the award of contracts for national highways has slowed down and there is less of interest from the private sector. Besides, issues related to environment and forest clearances, and land acquisition have come in the way of projects. Projects worth Rs 1,80,000 crore have been stuck due to various problems.