Major issues impeding road sector resolved: Government

May 25, 2013

 

PTI

 

 

 

 

 

 

(CCI also approved the constitution.. )

NEW DELHI: The government today said it has cleared bottlenecks impeding the growth of highways sector, including de-linking environment clearance from forest nod, paving the way for 20 stalled projects entailing investments of Rs 27,000 crore.

The Cabinet Committee on Investment (CCI) also approved the constitution of a high-level committee to look into the unresolved issues impacting the sector.

“The CCI was informed today that some of the bottlenecks identified by the Ministry of Road Transport and Highways (MoRTH) for the fast-track implementation of National Highways Development Project (NHDP) have now been removed as a result of the efforts made by the Ministry,” an official statement said after the meeting.

Some unresolved issues fall in the domain of other ministries, it said, adding that a high level committee under the chairmanship of Krishnaswamy Kasturirangan, Member, Planning Commission, has been constituted to suggest an amicable solution to these.

The statement said the issues resolved include grant of “Special Exemption or No Objection Certificate under Forest Rights Act, 2006″ for strengthening and widening of National Highways projects, specifically pertaining to diversion of protected forest land under the Forest Conservation Act, 1980.

Other major issues resolved include “de-linking the grant of environment clearance from forest clearance for linear projects” and “treating the strengthening and widening of national highways infrastructure projects differently from the new projects and allowing construction of national highways in non-forest areas, as expenditure does not become infructuous in such projects.”

The CCI gave nod to enhance the ceiling of 4,000 km of four laning in NHDP Phase-IV to 8,000 km on Build, Operate and Transfer (BOT) (Toll) mode only, based on the traffic justification according to the Indian Road Congress (IRC) code and guidelines.
The statement said: “The waterfall mechanism recommended by the B K Chaturvedi Committee for determining the execution mode of the road projects that is BOT (Toll) followed by BOT (Annuity) and then Engineering Procurement and Construction (EPC) to be delegated to the ministry to decide in cases where the Passenger Car Unit (PCU) falls between 5,000 and 10,000.”

It added that 4,000 km of road projects were permitted to be taken up for upgradation on EPC basis in 2012-13 and in case of Public-Private Partnership (PPP) projects, it has been decided that the debts due to the lenders will be considered as “secured” loan. The government said the users of National Highways throughout the country will be benefited due to infrastructure development.

This will also help uplift the socio-economic condition, increase connectivity with far flung areas leading to higher economic activity and will also increase employment potential for local labourers for project activities, it added.

The Supreme Court in March had allowed delinking of environment clearance from forest approval. As many as 20 road projects worth Rs 27,000 crore were stuck long for want of environment clearances.

With the CCI nod for delinking forest and environment clearance a road project can start work once it gets environment approval. Earlier, the forest clearance was mandatory before start of the work on roads stretches falling in forest and non-forest areas. The highways sector has been battling problems like equity crunch, delays in clearances and land acquisition besides major players abandoning projects mid-way.

2 Comments on “Major issues impeding road sector resolved: Government” Post your comment

  1. Daljit Singh Khokhar on May 28th, 2013 10:53 am

    t is of course good step to boost the construction of roads but some how the BOT model of payment requires immediate review.This system lacks the fund management on the part of the concessionaire for delaying the project entailing cost escalation .Finance allocated in the annual budget and revenue collected by NHAI by Infrastructure Public deposits,loan on deferred term of payment from ADB or other financing institution with Government guarantee and partly revenue collected by Road Tax Registration by states should go in to make the payment to the builders without Toll Plazas in the cities.The builders should invest first from their own resources for which they have the responsibility and claim payment against the road completed and approved by Third Party Inspection as per term and conditions of the contract.To provide good infrastructure is basic responsibility of the Government as the public is contributing to the revenue by way of taxes. I think the length of the Highway should be planned according to the funds available and adhering to construct at least 15-20 KM per day with no problem from other ministries as cleared by CCI also.

  2. ITW Editor on May 29th, 2013 11:09 am

    Dear Sh.Daljit Singh ji,

    Thank you very much for your wonderful feedback and giving a real balanced views on the road sector issues. we feel encouraged by your valuable inputs to come our with more such news on the issued plaguing not only on the road sector front but also on the General Infrastructure in the country.

    Thank You once again for sharing your valuable thoughts with us.

    Best regards,

    Editor. Indian Tollways.

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