Government sets target of building 9,000 km National Highway this year
Updated: Apr 16, 2013 08:31:47pm
"For the FY 2013-14, the internal target has been fixed at 9000 km of National Highways so as to ensure award of at least 7300 km during the year. The plan envisages more than 50 per cent of the projects to be taken up on Engineering Procurement Construction (EPC) mode. This approach aims at rejuvenating the road construction industry," an official statement said here.
The targets were reviewed by Road Transport and Highways Minister C P Joshi in the backdrop of a dismal show last year when award of road projects declined to 1,933 kms -- much below the target of 9,500 km.
Government is encouraging private-public partnership to finance the project but so far there has been subdued market sentiments and the tepid response to bids in respect of PPP projects.
“The strategy aims at striking a balance between the projects on (PPP) mode and thus supported through the budget,” it said.
The sector faces impediments like lack of equity with road construction companies and the overall economic environment which affected sentiments including that of lenders. (KNN)