Govt targets giving contracts for 25,000 km roads in FY17

Encouraged with the good show in highways building during the just-concluded fiscal, the Roads Ministry has increased the target for awarding projects by 2.5 times to 25,000 km for the ongoing fiscal.
The construction target has also been increased 2.5 times to 16,000 km for the fiscal, translating into building over 40 km of highways a day.
Last year, the Road Transport and Highways Ministry had awarded a record 10,000 km of projects and constructed 6,000 km of highways, which is 36 per cent higher than the preceding fiscal.
"Minister of Road Transport and Highways Nitin Gadkari has fixed 2.5 times increase in the target for award and construction of National Highways for the year 2016-17," a statement from the ministry said.

Encouraged by the good performance of his ministry in 2015-16, he expressed confidence that the pace of development that was established last year will result in even better outcome during the current year, it said.
"The minister has set a target of 25,000 km of National Highways to be awarded in 2016-17 as against the 10,000 km awarded in 2015-16. The construction target has been set at 15,000 km as against the 6,000 km constructed last year," the statement said.

Of the total length of National Highways targeted for award, 15,000 km would fall under the target of National Highways Authority of India (NHAI) and 10,000 km under the target of the Ministry and National Highways and Infrastructure Development Corporation (NHIDCL).

NHAI's target for construction has been fixed at 8,000 km while for the Ministry and NHIDCL, the target is 7,000 km.
"The year 2015-16 has been one of very positive outcomes for the Ministry of Road Transport and Highways. Works on a length of more than 10,000 km were awarded for the very first time. The completion of construction of 6,000 km marked a year-over-year increase of nearly 36 per cent," the ministry said.
The speeding up of road projects has been made possible due to several policy interventions which include the ministry being empowered to decide mode of delivery, increased threshold for project approval, enhanced inter-ministerial coordination, Exit Policy and promoting innovative project implementation models like Hybrid Annuity Model.

The road ministry further said that for projects with
civil works of Rs 100 crore or more, the training will be taken up by the project head looking after the concerned project through the authorised training centres of Directorate General of Training.
Preference is to be given to the institutes located near the project site, it said.
The training cost will be met from the provision of the contingency fund at a rate of 0.05 per cent of the total estimated cost of civil work, it added.
"For example, if the total civil construction cost is Rs 100 crore, contingencies at 2.8 per cent would be Rs 2.8 crore. Provision for skill development as proposed at 0.05 per cent would then be Rs 0.05 crore and the contingencies available for the main work would be Rs 2.75 crore," the statement said.

For this training also, the ministry will pay the trainees a stipend based on minimum wages to compensate for the loss of income during the training period, it said adding this expenditure will be met from the CRF (central road fund) allocation.
The government said it aims to rope in private developers into the training scheme by directing that the contract documents/agreement should be amended to include the provision that the contractor/concessionaire will try to hire at least 10 per cent trained workmen as per NSQF.
The Ministry has directed that adequate provisions should be incorporated in the tender documents immediately and be made applicable to all projects with civil works of Rs 100 crore and above which are at tender stage or yet to be awarded.