The National Highways Authority of India (NHAI) hopes to exceed its annual target of 7,300 km road projects by 13 per cent to 9,000 km for the current financial year — almost double of what it had awarded last year.
“In the first four months, we have already awarded over 3,100 km of road projects and will easily be able to cross the 9,000 km mark by the end of this fiscal,” said a senior NHAI official, requesting anonymity.
The official said NHAI had wanted to set a target of over 9,000 km this year but the Planning Commission had brought it down, saying NHAI would not be able to achieve it.
| ROAD ROTA |
| * The National Highways Authority of India hopes to exceed its annual target of 7,300 km road projects by 13 per cent to 9,000 km for the current financial year |
| * NHAI had wanted to set a target of over 9,000 km this year but the Planning Commission had brought it down saying NHAI would not be able to achieve it |
| * In FY12, NHAI had announced 59 projects covering 7,994 km and costing Rs 60,000 crore — compared to 96 projects covering 12,000 km worth Rs 1,00,000 crore for the last financial year |
| * When UPA-II came to power, Kamal Nath was brought in to reform the functioning of the ministry and NHAI. He set a target to build 20 km a day, increasing it from the earlier three km a day |
In FY12, NHAI had announced 59 projects covering 7,994 km, with a total cost of Rs 60,000 crore — much less compared to the target of 96 projects covering 12,000 km worth Rs 1,00,000 crore for the last financial year, when Kamal Nath was at the helm.
During his tenure, Nath had come up with project plans for two financial years and had set a target of awarding a little over 200 projects worth Rs 2,00,000 crore. However, NHAI could grant only a little over 70 projects and the 20-km target per day remained on paper.
The award of road projects had slowed while UPA-I was in office. While the economic slowdown and the ensuing liquidity crunch had affected the performance keeping companies away, T R Baalu’s performance as the road transport minister was also dissatisfactory.
In mid-2009 when UPA-II came to power, Kamal Nath was brought in to reform the functioning of the ministry and NHAI. He had set a target to build 20 km a day, increasing it from the earlier three km a day.
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Industry insiders said it would not be difficult for NHAI to increase its own target.
“I will not be surprised if NHAI exceeds the current target. The policy has been changed quite a bit and made dynamic, which will facilitate the bidding process. Also, the demand for road projects is at its peak because of other sectors drying up,” said an executive of a Mumbai-based infrastructure company, on condition of anonymity.
NHAI had recently decided to make the bidding process less complex by making a Request for Qualification (RFQ) document valid for a year. With this, road developers would save the six months that goes in preparing the document every time one places a bid.