Govt eases curbs on steel for highway construction to reduce cost

Doing away with restrictive conditions for use of steel in highways construction, the government on Sunday announced that all kinds of steel will be allowed for highways provided these meet the quality parameters.

Earlier, the contract provisions required use of steel produced by primary/integrated steel producers only. The move is aimed at ensuring cost reduction in highways construction using steel.

"The Ministry of Road Transport and Highways has issued orders that all steel whether produced from ore, billets, pellets or melting of scrap - would be allowed to be used for National Highway construction, as long as it meets the standards required for specific grades of steel," the Ministry said in a statement.

The steel proposed to be used would be tested in NABL-accredited laboratories as a third party check before approval. The move is based on the analysis and discussions with stakeholders and also technical opinion.

In view of the increase in steel prices, which can impact the cost of building national highways, Road Transport & Highways Minister Nitin Gadkari had suggested the need to re-look at all conditions which could be restrictive, without impacting the quality of material used for highway construction.

With this step, the supplier base for steel used in the construction of national highways would increase, leading to more competition and better price discovery by the markets, the statement said.

This is also part of the continuous effort by the Minister to reduce costs through use of new technology, reducing restrictions on suppliers and making the procurement system transparent, it added.