Equity crunch, land acquisition delay 414 highway projects

Plagued by equity crunch as well as regulatory and land acquisition hurdles, as many as 414 highway projects are embroiled in delays, the government said today.

Of these, 120 pertain to NHAI, 43 to border roads organisation (BRO), 8 to NHDP, 35 to left wing affected areas, 38 to SARDP scheme and the remaining to states.

"Such languishing NH projects have been delayed due to lack of equity, difficulties in obtaining additional debt by the concessionaire, delay in land acquisition/utility shifting/ statutory clearances as well as non-availability of soil/aggregates in some parts of country," Road Transport and Highways Minister Nitin Gadkari informed the Lok Sabha in a written reply.
 

Inadequate project preparation in the past and lack of regulatory clearances and other delays attributable to the NHAI or developer turned the projects unviable, he said.

Gadkari said the government has taken steps to correct the situation which include one time fund infusion to revive and physically complete languishing NH projects under public- private-partnership mode that have achieved at least 50 per cent physical completion.

"Government has also permitted extension of concession period for languishing National Highways projects on BOT (build, operate and transfer) toll mode for the period of delay not directly attributable to the developer," he said.

He said NHAI has also decided not to award any EPC (engineering, procurement and construction) project till 80 per cent land is available and till all major pre-construction approvals are in place.