Road min downs shutters on new projects till Nov

July 30, 2013


At a time when the Prime Minister’s Office (PMO) has stepped up tracking the progress in award and implementation of infrastructure projects, the road ministry and the National Highways Authority of India (NHAI) have decided not to award any new highway projects until November.

The reason: financial stress at potential bidders, non-availability of land and uncertainty over securing environment clearances. The virtual suspension of bidding follows a steep decline in award of new projects. Awards of build-operate-transfer (BOT) highway projects which had peaked in 2011-12 at 6,491 km saw a dramatic decline to 1,116 km in 2012-13. This year, clearly, is going to be worse.

Government sources and officials from developers like Soma Enterprises and Reliance Infrastructure separately confirmed to FE that no new projects were likely to be awarded till close to the end of 2013. “The bull run in the highway sector is over. There are no takers for any new road projects,” said DV Raju, vice-president, National Highway Builders Federation.

A senior NHAI official said: “We are not ready to launch any bid on the engineering procurement and construction (EPC) mode nor the BOT mode as of now. Developers are cash-strapped and the investment climate is not conducive enough. We don’t want to launch bids in a hurry in a bad market.”

Developers feel the government must prepare detailed project reports and traffic studies to attract the right bidders and take steps to prevent long-pending arbitration cases, high interest rates and falling toll collections hindering projects.

“The market scenario  is not good. Highway developers have had several communications with the roads ministry and the NHAI has highlighted the problems faced by developers.

Land acquisition and banks’ reluctance to lend are major concerns. Until these issue are resolved, the highways sector is unlikely to look up,” Sudhir Hoshing, CEO Reliance Infrastructure said. Government sources, however, said the authorities would ensure that developers do not face problems and address their concerns at the earliest. The government is disturbed by rising incidents of developers unable to achieve financial closure and walking away from contracts. NHAI has been encouraging builders not to abandon projects and complete the contracts, these sources said.

“We are working towards organising the back-end work including minimum of 80% of land acquisition and environment and mining clearances. Until we meet all necessary requirements, we won’t be in a position to award any new project either on EPC mode or the BOT mode until October-November,” the a road ministry official quoted earlier said.



Electronic Toll Collection to be Rolled Out on NHs Across Country by March Next Year

May 30, 2013

 The Ministry of Road Transport and Highways aims to rollout Electronic Toll Collection( ETC) across all the toll plazas on National Highways in the entire country by March 31, 2014.This was stated by Dr. CP Joshi, the Union Minister for Road Transport and Highways(MoRTH) in Delhi on march 5, 2013 while delivering the keynote address at a discussion organised on” India’s Highways-Next Gen Tolling and Corridor Management”

Electronic Toll Collection is a system enabling collection of toll payments electronically allowing for near-nonstop toll collection and traffic monitoring.ETC utilizes vehicles equipped with transponders(electronic tags),wireless communication, in-road/roadside sensors and a computerized system(hardware and software) for uniquely identifying each vehicle ,electronically collect toll, providing general vehicle/traffic monitoring and data collection.

Here is the text of Minister’s speech 

“ I am confident that the daylong discussions would have sparked off ideas that have the potential of revolutionizing Tolling and Corridor Management on Indian Highways.

“The mission of Government of India has been to make quality highway network across the country and make the system transparent and responsive.

“In our bid to do so / I am glad to share that by the end of this financial year we would complete construction of nearly 3000 kilometers of National highways, / which is a record till date.

“Along with constructing highways we are also re working our systems to sync with times. To make the system transparent / we first introduced e-tendering, / followed it with pilot project to Electronically collect Toll.

“Now we have a vision to mark national highway network on maps / making it compatible to mobile devices / and even have apps for highway network.

“I will elaborate a bit on our endeavor to implement RFID based Electronic Toll Collection (ETC) system across National Highways.

“The RFID technology shall expedite the clearing of traffic at toll plazas / and the need of carrying cash shall also be eliminated when Toll plazas shall be duly integrated with each other throughout India.

“We started a Pilot Project on ETC last year in April at Parwanoo on NH-5. /

“The pilot is being carried successfully and concessionaires have been requested to work out necessary modalities with the ETC solution providers / and Banks for setting up of Central Clearing House (CCH).

“A few more stretches have also been selected for ETC implementation. They are Mumbai – Ahmedabad, Chennai- Bangalore and Gurgaon – Jaipur – Beawar.

“I would like to assert that by March 31, 2014 we aim to implement ETC across all the toll plazas on our National Highways.

“For implementation of nationwide electronic toll collection we have recently constituted / Indian Highways Management Company Limited (IHMCL) / with equity partnership from NHAI (50%) Concessionaries (25%) and institutions (25%) .

“Government of India is also amending the Central Motor Vehicle Rules, 1989 for fitment of RFID tag on vehicles by the automobile manufacturers.

“I am happy that Feedback Brista Highways OMT Pvt. Limited (FBH) has organized this special session to discuss the issues that affect user comfort at the Toll Plazas and how we can develop an effective and efficient mechanism at Toll Plazas on National Highways.

“Our endeavor will be to develop policies and systems for happy user experience on Indian Highways / through better safety measures / and / lower waiting time at the Toll Plazas.

“We will be happy to partner with the Government of Portugal to develop a mechanism for better cooperation and collaboration in this regard.”



Operators cock a snook at toll rules

December 24, 2012

The Ministry of Road Transport and Highways (MoRTH) has finally woken up to the gross violation of the toll agreements with concessionaires, who are collecting road tax on 17 major “under-construction” highways in violation of rules.

The amended notification of 2009 bars toll collection on incomplete highways. The flouting of rules came to notice from projects like Gurgaon-Kotputli-Jaipur, Delhi-Agra, Varanasi-Aurangabad and the Pune-Satara national highways.

Ironically, the violation of the Central Government’s notification is taking place under the garb of “technicality”. While the Government rules specifically mention that no toll can be imposed on the under-construction road projects, developers have started collecting toll. At present, there are 212 toll collection centres across the country under the National Highways Authority of India’s (NHAI) various projects based on PPP, BOT or OMT model. “The collection of fee levied shall commence within 45 days from the date of completion of the section of national highway, permanent bridge, bypass or tunnel, as the case may be, constructed through a public-funded project,” says the Review (Report) of the Toll Policy of National Highways in May 2009.

The Government has notified the National Highways Fee according to the National Highways Fee (determination of Rates and Collection) Rules 2008, and the rules are amended periodically. In 2009, it was amended keeping in mind widespread protest by road users and misuse by the concessionaries of BOT or PPP. A well-placed source said that the Ministry has asked the road making agency to review the contract agreement between the NHAI and concessionaries on the 17 stretches where toll is being charged.

However, a Ministry official justified the road tax on six-lane under-construction projects with the argument that toll was collected when these roads were just four-lane ones. However, citing the 2009 amendment, another official contested the argument citing the amended notification.
There are 111 public-funded road projects which collect toll. There are 102 State-wise stretches on which tax is levied. These include the 312-km Durg Bypass on NH-6 where toll is being collected by M/s Shakti Kumar M Sancheti Limited since December 2000. On some roads like the 72-km Badarpur-Kosi on NH-2, toll is being collected since June 2002. The Ministry also received complaints of overcharging by toll operators on NH-5 in Andhra Pradesh at Laxmipuram and Sunnambatti Toll Plaza. The concessionaire was penalised to the tune of `3.6 crore in total and contracts terminated. A penalty of `1.48 crore was levied o Vantada Toll Plaza in Gujarat. The matter is sub-judice.


Poor market sentiment for slow pace in road project awarding

December 3, 2012

NEW DELHI: The government today said pace of awarding road projects is slow in the current fiscal due to a host of reasons, including poor market sentiment.

“The pace of award of projects is slow due to various constrains like poor market sentiments, shortage of equity of developers, lender’s pre-condition of 80 per cent possession of land…,” Minister of State for Road, Transport and Highways Sarvey Sathyanarayana said in a written reply to the Lok Sabha.

The exposure limit of banks for infrastructure projects reaching to its pinnacle and Supreme Court’s ban on quarrying of stones and pure earth, used in road construction, are also posing problems.

The Minister, however, said out of the 6,089 km National Highways targeted to be developed/improved during the current fiscal under NHDP (National Highways Development Project) and non-NHDP schemes, 2,493 km have been developed till September.

Sathyanarayana said 32 projects, aggregating 3,750 km, are proposed to be taken up with 100 per cent Government funding in various states on engineering, procurement and construction mode as these were not viable to be developed on Built Operate Transfer (BOT) mode.

In a separate reply, he said that of the proposed 32 projects, 10 with a total length of 1,010 km are in Rajasthan and six road projects measuring 765 are in Uttar Pradesh among others.

In another reply, Sathyanarayana said that a proposal amounting to Rs 156.79 crore was received for development of the existing four-lane carriageway to six-lane carriageway passing through Ghaziabad on NH-24.

“… the same was returned unapporved as the work was not included in the Annual Plan 2012-13,” he said.


At 8,000 kms, Road Ministry awards 57% more work in FY12

April 3, 2012

NEW DELHI: Road ministry has ended the year on a high as it has awarded 62 projects covering 7,957 kms in the current fiscal, 57% higher than the previous year. The government is all set to achieve its earlier announced target of building 20 kms of road per day by 2013-14, as it has completed construction of 2,250 kms road in 2011-12, in comparison to 1,784 kms in the previous year.

In 2011-12, National Highways Authority of India(NHAI) has awarded 49 projects of 6,491 kms and the ministry awarded 13 projects for 1466 kms through state agencies. In all, 62 projects of 7,400 kms have already been awarded as against the target of 7,300 kms.

Some of the projects awarded have offered premium to the government and is likely to result in additional revenue generation of Rs 30,400 crore during the concession period.

“We want to accelerate this achievement further in 2012-13. We are confident of achieving the target of 8800 kms, said CP Joshi, Union Minister of Road, Transport and Highways. Joshi added that bids for 1,500 kms are either under evaluation or due in April,2012.

In the recent bids, which opened on March 28 and March 30, NHAI received a phenomenal response with road project developers providing premium on seven projects that would earn Rs 6,451 crore whereas one project sought a premium.

Companies like L&T, Sadbhav Engineering and IVRCL were amongst some of the successful bidders for 8 projects entailing highway development of 1,144 kms, having an estimated cost of Rs 11,500 crore. IVRCL will provide the highest premium at Rs 145 crore. “The bids are far better than what we had anticipated. Even the single project which asked for grant, it was much lesser than our estimates,” said an NHAI official.

These companies have opted to provide premium to the government, instead of taking viability gap funding. The government provides VGF or grant to the project developers for ensuring viability of the projects.

L&T won two bids and thus would be completing the full stretch from Gujarat border to Amravati. This road connects Hazira port -Surat to Paradip and eventually Kolkata.

In addition, 3 projects in NHAI of 318 Kms. and 5 projects in the Ministry of 664 Kms. i.e. 982 Kms. in all, bids have been received, which are under evaluation and decision is to be taken soon. It is possible that the government may award a few hundred kms if some of these projects are cleared tomorrow.


Ministry bid to meet highway target is a boon for infra cos

April 2, 2012

The timing chosen by the Highways Ministry — the last four days of the fiscal just ended — to open bids worth Rs 11,564 crore would end up fattening the order-books of many listed infrastructure companies, apart from helping the ruling UPA-II alliance meet its target of awarding 7,400 km of highways.

“In what may be an unprecedented move, the Highways Ministry and NHAI issued the Letters of Intent (LoI) the very next day after the bids were opened, that too on a Saturday, a Government holiday. The LoIs will help companies book orders, and maybe earn revenues, for fiscal 2011-12 — without raising any eyebrows. Earlier, firms have booked orders without LoIs in hand, but with a disclosure.

The listed companies that gained from the year-ender round of bidding include Larsen & Toubro Infrastructure, Unity Infraprojects, IVRCL and Sadbhav Engineering. Over Rs 7,600 crore of projects, or 65 per cent of total bids opened, were bagged by firms listed on the stock exchanges.


With these bids, Larsen and Toubro, the parent firm of the largest beneficiary of these bids, L&T Infrastructure, will inch closer to achieving its order-book guidance of five per cent year-on-year growth. L&T Infra grabbed projects worth Rs 4,500 crore, or 40 per cent of the bids opened in value terms, was the largest gainer from the last four days of bids.

“As on March 30, L&T (parent company) required about Rs 34,340 crore inflows in the fourth quarter of fiscal 2012 to achieve its stated guidance,” an analyst of a brokerage firm tracking L&T told Business Line, requesting anonymity as he is not permitted to speak to media.

In the nine months ended December 2012, L&T had reported inflows of Rs 49,420 crore, which implies flat year-on-year growth. Even before these bids were opened on March 30, L&T had announced orders of Rs 12,090 crore during the fourth quarter of financial 2012, added the analyst.

Due to these bids, order-books of Sadbhav Engineering would increase by Rs 1,102.48 crore, IVRCL Rs 1,617 crore and Unity Infraprojects Rs 438.75 crore.


These projects, which would help develop 1,100 km of highways, were a part of the Highway Ministry’s award list firmed up early in fiscal 2012. But to ensure that the projects did not spill over to FY 2013, an empowered Group of Ministers (eGoM) stepped in to allow relaxation of a required approval process.

The relaxation ensured that the Ministry could approach the Cabinet Committee of Infrastructure directly for approval, instead of the Public Private Partnership Appraisal Committee (PPPAC). The Highways Ministry made this proposal a day after Mr Pulok Chatterjee asked it to expedite awarding 15 major projects requiring construction of 1,547 km during fiscal 2012.

The mandatory PPPAC approval for these projects had got delayed for months. The Highways Ministry was informed that the nod was getting delayed because the appraisal note had not come in from the Planning Commission, one of the members of the PPPAC. This made the Ministry escalate the issue as it was affecting project targets.

This relaxation has helped the UPA-II Government achieve its target of awarding highway projects of 7,300 km, with the Finance Minister, Mr Pranab Mukherjee, announcing in the Budget that the Government is on track to meet its target of awarding 7,300 km of highways.

The bidding process did follow the annual pre-qualification and e-tendering methodologies, both aimed at removing discretionary powers and increasing competition.



Major achievements of Road Transport Ministry in 2011

December 26, 2011

A length of 3800 km is proposed to be funded from a World Bank loan of US $ 2.96 millions and the balance length is proposed to be taken up through budgetary resources.

Improvement of road connectivity in Left Wing Extremism (LWE) affected areas: The Union Government has approved a scheme for development of about 1,125 km of National Highways and 4,352 km of state Roads in Left Wing Extremism (LWE) affected areas as a special project estimated to cost about Rs. 7,300 crore.

During the year 2011, works in a length of 1127 km costing Rs. 1593 crore have been awarded upto November, 2011.

Special Programme for 2-laning of entire balance NH network not covered under any approved programmes: – Ministry of Road Transport & highways has taken initiatives to develop 6,700 km of single lane / intermediate lane National Highways to minimum 2 lane standards on corridor concept. A length of 3800 km is proposed to be funded from a World Bank loan of US$2.96mn and the balance length is proposed to be taken up through budgetary resources.

During the year 2011, works in a length of 699 km costing Rs. 1675 cr have been awarded. Consultancy studies for preparation of Feasibility study/ DPRs for the entire length of 3800 km to be funded out of World Bank assistance are in progress and targeted to be completed by March, 2012

Special Accelerated Road Development Programme for North-East region (SARDP-NE):

The scheme has been envisaged to be taken up under three parts as under:

  • Phase ‘A’ of SARDP-NE approved by the Government envisages improvement of about 4,099 km length of roads (2041km of NH and 2058 km of state roads).  The SARDP-NE Phase A is targeted for completion by March, 2015.
  • Length sanctioned & awarded during the calendar year up to November, 2011 – 91 km
  • Length completed during the calendar year up to November, 2011 – 10 km
  • Work in progress as on 30th November, 2011 is 1608 km.

Phase ‘B’ of SARDP-NE, covering 3723 km (1285 km NHs and 2438 km of state roads) has been approved for DPR preparation only and so far, DPRs for about 450 km have been completed (up to 30th November, 2011)

Special Package for Arunachal Pradesh:  The Arunachal Pradesh Package for Road & Highways involving development of about 2319 km length of road (1,472 km of NHs & 847 km of State / General Staff / Strategic Roads) has also been approved by the Government.  Projects on 776 km are to be taken up on BOT (Annuity) mode and the balance 1,543 km is to be developed on EPC basis.  The entire Arunachal package is targeted for completion by June, 2015.

Length sanctioned & awarded during the calendar year and work in progress as on 30th November, 2011  – 311 km

Development of NHs entrusted with State PWDs which are not covered under any approved programme such as NHDP, SARDP-NE etc.

Physical progress of non-NHDP sections of National Highways during 2011-12:

Sl No Category Target* Achievement*
1 Improvement to low grade (kms) 1.00 3.50
2 Widening to 2 lanes (kms) 450.00 392.40
3 Strengthening (kms) 450.00 342.91
4 Improvement of riding quality (kms) 1200.00 1364.42
5 Widening to 4 lanes (kms) 60.00 33.07
6 Bypasses (Nos) 2 2
7 Bridges / ROBs (Nos) 50 53
* Up to October, 2011

Highways Wing

Cabinet Committee on Infrastructure (CCI) during the calendar year 2011 has approved 31 Road projects for a length of about 4318 Kms. with Total Project Cost of Rs. 41,109.03 Crores and projects for 4036 Kms. have been awarded. Detail of the projects approved by the CCI during the year 2011 is as follows:

S. N Name of the Project State NH No. NHDP Phase Length
(in KM)
TPC (in crore) Approved by CCI in its meeting held on
1 Beawer-Pali-Pindwara
Rajasthan 14 III 244.12 2388 20.04.2011
2 Ahmedabad-Vadodara
Gujarat 8 V 102.3 2125.24 06.04.2011
3 Kota-Teendhar (Jhalawar)
Rajasthan 12 III 88.09 530.01 06.04.2011
4 Nagpur-Wainganga Bridge
Maharashtra 6 III 45.43 484.19 20.04.2011
5 Eastern Peripheral Expressway Haryana/U.P NE-II 135 2699 20.04.2011
6 Panikolli-Rimuli (4-laning) Orissa 215 III 166.197 1410 09.06.2011
7 Jabalpur-Lakhanadone
Madhya Pradesh 7 IV-A 80.825 776.76 23.06.2011
8 Chhattisgarh/Orissa Border Aurang
Chhattisgarh 6 IV-A 150.4 1232 21.07.2011
9 Walayar – Vadakkancherry
Kerala 47 II 54 682 21.07.2011
10 Jabalpur-Katni-Rewa
Madhya Pradesh 7 IV-A 225.686 1895.45 04.08.2011
11 Meerut – Bulandshahar
Uttar Pradesh 235 IV-A 66.043 508.57 11.08.2011
12 Gwalior – Shivpuri (4-laning) Madhya Pradesh 3 & 75 IV-A 125.3 1055 05.09.2011
13 Shivpuri – Dewas (4-laning) Madhya Pradesh 3 IV-A 320.21 2815 05.09.2011
14 Poonamallee-Walajahpet
Tamil Nadu 4 V 93 930 05.09.2011
15 Kishangarh-Udaipur-Ahmedabad
Rajasthan/Gujarat 79A,79, 76, NH-8 V 555.5 5387.3 15.09.2011
16 Hospet-Bellary-Karnataka/AP Border (4-laning) Karanataka 63 IV-A 95.44 910.08 30.09.2011
17 Lucknow-Sultanpur (4-laning) Uttar Pradesh 56 IV-A 125.9 1043.51 30.09.2011
18 Birmitrapur – Barkote
Orissa 23 IV-A 125.615 778.15 25.10.2011
19 Vijayawada – Machilipatnam
Andhra Pradesh 9 III 64.611 606 25.10.2011
20 Angul – Sambalpur
Orissa 42 IV-A 153 1220.32 16.11.2011
21 Obedullaganj – Betul
Madhya Pradesh 69 III 121.36 912 16.11.2011
22 Mah/Kar Border – Sangareddy
Andhra Pradesh
9 III 145 1266.6 16.11.2011
23 Hospet-Chitradurga
Karnataka 13 III 120.03 1033.65 16.11.2011
24 Agra – Etawah Bypass
Uttar Pradesh 2 V 124.52 1207 16.11.2011
25 Raipur – Bilaspur
Chhattisgarh 200 IV-A 126.525 1216.03 16.11.2011
26 Lucknow – Raebarelly
Uttar Pradesh 24-B IV-A 70 635.9 16.11.2011
27 Cuttack – Angul
Orissa 42 III 112 1123.69 16.11.2011
28 Etawah – Chakeri (Kanpur)
Uttar Pradesh 2 V 160.21 1573 16.11.2011
29 Rampur – Kathgodam
Uttar Pradesh/ Uttarakhand 24 III 93.226 790 16.11.2011
30 Mahulia – Baharagora – Kharagpur
Jharkhand / West Bengal 6 III 127.13 940 24.11.2011
31 Solapur – Mah/Kar Border
Maharashtra 9 III 100.6 934.58 24.11.2011

National Highways Authority of India (NHAI)

In order to improve transparency and accountability NHAI has switched to e-procurement and e-tendering for all types of projects including BOT since July, 2011.  In e-tendering mode 101 tenders have been floated by NHAI till 30.11.2011 of which 21 tenders are of BOT, 55 tenders are for Tolling on Reverse Auction and others of varied nature.

For Planning, Monitoring and Management of National Highways with the help of GIS based Satellite Imagery, specially in difficult areas like Left Wing Extremist (LWE), North-East (NE) and other States, inputs have been received from National Remote Sensing Center (NRSC),  20 National / International firms have been short-listed through a Global Tender.  The work is expected to commence shortly.

Public grievance redressal system of NHAI made interactive with the help of user friendly social networking site viz. Face Book (available at  28027). Between January, 2011 and  November, 2011,  more  than  4 lacs  persons have visited this site and about 3000 have registered themselves.  NHAI’s officers are regularly replying to the public queries directly on the Facebook wall of NHAI. Concessionaries of BOT projects have been advised to provide link to their sites on NHAI Facebook wall – for quick response to road users.

To upgrade the existing Assets Management System by basing it on web-based Geographical Information System (GIS) for the purposes of planning, construction and operation and maintenance of National Highways. Global tenders have been invited for 15000 Kms of stretches having been identified for this on both BOT and EPC projects to cater to both asset management and project management.

All concession agreement documents between the NHAI and concessionaire are now available on NHAI website at  CVs of key personnel’s of the Independent Engineers overseeing the BOT projects are being uploaded in phases on the NHAI website.

It has been decided to implement a combined state of the art Enterprise Resource Planning (ERP) for Ministry of Road Transport and Highways and National Highways Authority of India with the objective to integrate end to end business processes that were traditionally disjointed and share information through a common database. ERP when implemented will enhance the productivity and efficiency of both the organisations.  Ground work of Functional Requirement Study has been completed.

NHAI has large number of legal cases including with its contractors / concessionaire and vendors.  The entire system was handled earlier manually.  A web based customized software has been developed by NHAI through which it will be possible to retrieve information on Arbitration, Writ Petitions, Land Acquisition cases, Civil Contract cases, Criminal Cases and Central Administrative Tribunal (CAT) cases and tackle these disputes better.

In order to track the progress of construction and maintenance of the National Highways, a state of the art system is being developed to capture information / photos / videos directly from the site using tablet / notepad / personal digital assistant (PDA) / mobile phones and its retrieval on desktop / laptop by all concerned on real time basis.

Annual Pre-qualification of Bidders:

With a view to implement the recommendations of BK Chaturvedi Committee NHAI has adopted Annual Pre-qualification of bidders during the year 2011.  It has already completed the process of Annual pre-qualification and pre-qualified about 100 applicants/bidders.  These applicants are not required to submit voluminous documents at project specific RFQ. They will only submit the pre-qualification letter issued by NHAI.  This Annual pre-qualification is valid upto 31.12.2011.  NHAI has again taken up fresh pre-qualification.

Tax Free Bonds

As per 2011-12 BE, NHAI would raise a sum of total Rs. 11900 crore out of which 54EC Bonds contribute Rs. 1,900 crore and Tax Free Bonds contribute Rs. 10,000 crore.  The Government has authorized NHAI to issue, during the financial year 2011-12, tax free, secured, redeemable, non-convertible bonds aggregating to Rs. 10,000 crore. The draft shelf prospectus has been filed with BSE, NSE and SEBI. The issue is likely to open in the 3rd week of December 2011.


Award of contracts

The pace of award of contracts has been accelerated to achieve the target of 20 kms in a day. As compared to achievement of award in 2009-10 of 3360 km and 5058 km in 2010-11, a total of highway length of 4036 km with total project cost of Rs. 36381.49 Cr. have already been awarded till November 2011. The balance is in advance stage of award for meeting the target of 7300 km planned for this year.

Feasibility Studies

As an advance preparation efforts have been made to keep the shelf of feasibility study available to increase the award of contracts beyond 7300 km. During the period from Jan’ 2011 to Nov’ 2011, Feasibility Studies of 6708 kms have been completed and out of which some are in pipeline for award.

Excellent Response from bidders

Despite the economic slowdown this year has witnessed a revival of interest among private investors and acceleration in award of projects due to new policy initiatives  taken to usher in fair competition & transparency. NHAI has received record premiums in the projects which have been bid out in the current year. In fact in one of the projects, 6-laning of Kisangarh-Udaipur-Ahmedabad section of 560 kms fetched premium of Rs. 636 crore (with 5% annual increase). This trend is very encouraging and validates the policy framework for PPP projects that has been established. In 20 projects, higher premium have been offered by the bidders as compared to the approved estimate by CCI.  Similarly in 6 projects, VGF grant demanded by the bidders are less as compared to approved estimate by CCI.  As a result of this, the net present value (NPV) of savings on account of premium / grant quoted by the bidders as compared to the same projected by NHAI in respect of 26 projects is Rs. 21,070 crores.

Land Acquisition

Despite an adverse climate in the field regarding land acquisition and reluctance on the part of farmers to part away their land on current rate of compensation in the hope of getting better compensation under new Act which is likely to be effective shortly, sufficient progress has been made in the matters of land acquisition for national highways.  In the current financial year 7800 hectares of land has been acquired till November, 2011 as compared to a total acquisition of 8533 hectares in 2010-11 and 6244 hectares acquired in 2009-10.


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