RoadMin wants inter-ministerial group out

Tells Gadkari involvement of PlanCom and FinMin members on such decision panels for highway projects has only created hurdles

The ministry of road transport and highways wants an inter-ministerial group (IMG) for awarding of road projects to be scrapped.

In presentations to the new minister, Nitin Gadkari, officials have argued against the IMG mechanism. The latter decides on modifications in bidding documents, approvals for changing the mode from private to government funding or otherwise, plus more minor issues.

Since the NDA government is focusing on hastening of projects, the minister is broadly in agreement with the officers, a senior official told Business Standard. “Instead of an IMG, the issues can be resolved within the ministry.”

Last week, while scrapping the system of groups of ministers handling various things, Prime Minister Narendra Modi asked ministries and departments to resolve disputes themselves.

Currently, the IMG for roads also has members from the Planning Commission and the finance ministry. “Most times, the Planning Commission has different views, which leads to delay in the projects. If a proposal gets stuck in an IMG, it has to go to the Cabinet, again a lengthy process. We want to eliminate the reasons for delays in revival of the road sector,” says another official.

Beside, the full National Highways Authority of India (NHAI) board already has the secretary in the expenditure department of the finance ministry and the Planning Commission as members.

The ministry is also in the process of making a list of projects stuck due to various issues. It will mention the point from where the delay started and at which level. It will then take up the issue with the other ministries concerned, the official said.

The tiff between the roads ministry and the Planning Commission is not new. Recently, NHAI Chairman R P Singh had written to Roads Secretary Vijay Chibber that the Commission should focus on larger issues rather than micro-managing. "The Planning Commission never applied itself to broader issues of equitable allocation of projects in the country and efficient utilisation of resources by creating an optimal road grid for maximum economic benefits to the country," the letter said.

Singh also called for an independent audit on the "role played by the Planning Commission in blocking and derailing all our attempts to revive the road sector and the consequent damage caused to the economy", according to reports.

Due to economic slowdown over recent years, the award of projects in roads and highways has slowed, beside issues related to environment and forest clearances, along with land acquisition problems. During 2010-2012, developers had bid aggressively when the government awarded a record 147 road projects worth Rs 1.47 lakh crore. At the time, India's economic growth was much higher; it has slowed since and input and inflationary costs have gone up.

Currently, road projects worth Rs 83,000 crore are pending completion. Since 2009, the government recorded the completion of only three projects, adding only 315 km to the existing highways' network. Many projects are stalled by developers running short of cash and the government has allowed them to reschedule the payment of premiums under a new policy.