More road projects via EPC on cards

August 28, 2012

In a bid to provide much-needed impetus to the fund-starved highways sector, the road transport ministry is looking at increasing road projects to be awarded through Engineering Procurement Contract (EPC).

For the current fiscal, the target is to award around 4,000 km of road projects.

“We have to meet our target of awarding 9,500 km of road projects during the current fiscal. If the projects do not find takers on the public-private partnership (PPP) mode, we may award them on EPC, as funding them is not a problem for us,” said a top road transport ministry official, who did not want to be identified.

The official further said that there is a fund crunch for road projects in the market, as the banks have exhausted their quota for loans for road projects.

“Lot of companies, who got projects last year, are also in the process of achieving financial closure and may not be interested in our projects on offer on PPP mode,” he added.

Two PPP modes on which the projects are awarded, include Build, Operate and Transfer (BOT)-toll and BOT-annuity.

The third mode is EPC, where the project is funded by the government and the road developer is obligated to build the highway within the stipulated time.

Currently, the road transport ministry and the National Highways Authority of India (NHAI) have to achieve an award target of 9,500 km of road projects as set by the PMO.

NHAI, however, feels that awarding projects on EPC will take time and awarding projects in time, and not money, may become a problem.

SOURCE: http://www.indianexpress.comn

Written by ITW Editor · Filed Under News, NHAI

One comment on “More road projects via EPC on cards” Post your comment

Daljit Singh Khokhar on August 29th, 2012 12:21 pm

I appreciate that the Road contracts would be awarded through Engineering Procurement Contracts instead of BOT,PPP or BOT Annuity. It is not proper to involve the road builders for long time to recover their investment through collection of Toll Tax by way of concession for 15 to 35 years depending upon their investment. The public money collected by way of Taxation should be used for the benefit of public and the roads should be Toll free for private commuters . The Toll Tax should be applicable for public and commercial transport vehicles like goods carriers,multi- axled trailers etc to collect addition revenue.( Please refer my article on Holiday for Toll at Delhi Gurgaon Toll plazas in my link http://www.esaydriveforum.com ) The toll free plazas for private cars will avoid traffic jams in the cities and traffic will move fast and thus save on precious fuel consumption.
Further I have to suggest that there should be sustainable production target of at least 10 KM per day with 250 working days in the year and the projects of road building should be completed in a year..The target should not be too ambitious that extensions are required to be provided to the builders for completion of the road. It has been observed that only 4.5 KM road per day app. has been constructed against 20 KM per day as was targeted by Mr. Kamal Nath when he was the minister of Roads. It is also necessary not overlap the award to one builders whose capacity is beyond his reach to deliver the project in time. His average capacity in KM per day should be seriously accounted for and award should be given the length of the road he has achieved best in the past .There should be no excuse for delayed delivery when we are basing 250 working days in a year.

Third party inspection should be mandatory and Bar Chart should be provided to each contractors to follow according to his previous performance..

While designing the highway the planners should give the consideration to the following additional facilities to clear the road accidents and legal road issues involved there of also:

A) After every 100 KM or so there should be FIRST AID facility to attend the trauma case to be provided on the road along with the police force to record the FIR immediately for the Insurance document processing and major death cases on the road.

B)Traffic court should also be provided to dispose of quickly the cases pertaining to the Highway accidents instead of referring the matter to civil court of the area . This will help provide the Insurance benefit to the involved party or parties belonging to different states and districts and Government will ensure quick disposal of the road cases.Justice will be fast for road accidents.
C) These facilities can be provided adjoining to the Road side resorts or Food Courts petrol/diesel outlets.etc
D) All such highway express ways should be under the Road ministry. The ministry will know practically the faults in the management and maintenance condition and locate the Accident Prone areas and do needful to avoid or minimize such recurrence on the roads they are constructing.

The ministry of roads should make suitable provision and law to redress all the Highway and Express way problems like Railway Ministry. The road accidents and deaths are much more than Railway.
Thanking You,
Daljit Singh Khokhar