Road ministry says highway project awards on track

Even as the award of road projects is in a slow lane, the National Highways Authority of India (NHAI) is confident of achieving the new target set by Prime Minister Manmohan Singh at yesterday’s meeting on infrastructure.

A number of projects under NHAI are expected to be awarded for two-laning of national highways. Singh increased the annual target award for the road transport ministry by 700 km to 9,500 km, from 8,800 km announced by Finance Minister Pranab Mukherjee in his Budget speech for the current financial year. “Our target was increased, as we were able to achieve the target set for the last fiscal. Our minister has also said we would be able to achieve the current target as well,” said a road transport ministry official, who did not want to be identified.

Together, the ministry and NHAI, have been able to award around 1,000 km of road projects so far this financial year. Together, 62 projects covering 7,957 km of road projects were awarded in 2011-12. This comprised 6,491 km by NHAI (49 projects) and 1,466 km (13 projects) by the ministry through state agencies.

This year, NHAI will have to award around 8,000 km of road projects and the rest will be awarded by the ministry. “We would be able to, but it would also depend on how soon the Model Concession Agreement on Engineering Procurement Contract is finalised,” said a senior NHAI official.

The model concession agreement for EPC projects is in consultation stage and has been delayed due to reservations on defect liability clause.