Govt empowers Ministry of Road Transport to approve projects upto Rs. 1000 Crore
Updated: Nov 19, 2015 02:55:59pm
New Delhi, Nov 19 (KNN) To expedite construction of national highways, the Cabinet has taken a decision on Wednesday to allow the Ministry of Road Transport and Highways to approve projects with civil construction cost of up to Rs 1,000 crore. Till date for such projects the Ministry had to go to the Cabinet for approval which caused considerable delays.
In another decision, Government decided to compensate developers in case of delays in highway projects due to extraneous reasons. The decisions taken by the CCEA chaired by Prime Minister Narendra Modi, is expected to fast track at least 34 highway projects which are held up due to various reasons, primarily, non-availability of Land, delay in permission for forest land etc. This will make all current projects (toll) in Build Own Transfer (BOT) mode eligible for extension of concession period if these are delayed due to causes not attributable to the concessionaire. National Highways Authority of India (NHAI) has been authorised to review such projects on case to case basis and allow extension of the concession period.
“The Cabinet has taken a decision to allow the Ministry of Road Transport and Highways to go into the merit of each case and wherever the delays are not attributable to the developer, extend the tolling period,” Coal and Power Minister Piyush Goyal told reporters after the CCEA meeting.
Now all national highway projects, with civil construction costs, segregated from other costs up to Rs 1,000 crore will be appraised by the Secretary, Road Transport and will be approved by the Minister.
It may be noted that the government has set a target to award 10,000 km of highway projects in the current financial year. However, almost 7,500 km of highway projects awarded on BOT basis face implementation risk. An analysis of such projects showed that weak financial condition of sponsors, cost and time overruns and low growth in toll revenue are making projects unviable.
As mentioned in one leading daily - Stalled Highway projects: Past imperfect, future ambitious. (KNN/ DB)
In another decision, Government decided to compensate developers in case of delays in highway projects due to extraneous reasons. The decisions taken by the CCEA chaired by Prime Minister Narendra Modi, is expected to fast track at least 34 highway projects which are held up due to various reasons, primarily, non-availability of Land, delay in permission for forest land etc. This will make all current projects (toll) in Build Own Transfer (BOT) mode eligible for extension of concession period if these are delayed due to causes not attributable to the concessionaire. National Highways Authority of India (NHAI) has been authorised to review such projects on case to case basis and allow extension of the concession period.
“The Cabinet has taken a decision to allow the Ministry of Road Transport and Highways to go into the merit of each case and wherever the delays are not attributable to the developer, extend the tolling period,” Coal and Power Minister Piyush Goyal told reporters after the CCEA meeting.
Now all national highway projects, with civil construction costs, segregated from other costs up to Rs 1,000 crore will be appraised by the Secretary, Road Transport and will be approved by the Minister.
It may be noted that the government has set a target to award 10,000 km of highway projects in the current financial year. However, almost 7,500 km of highway projects awarded on BOT basis face implementation risk. An analysis of such projects showed that weak financial condition of sponsors, cost and time overruns and low growth in toll revenue are making projects unviable.
As mentioned in one leading daily - Stalled Highway projects: Past imperfect, future ambitious. (KNN/ DB)
Loading...
