Six-laning project hits roadblock

Contentious issues like land acquisition and sharing of toll seem to have put the approval of the new model concession agreement (MCA) for highway projects on hold. Industry players feel that the above-mentioned issues have not been properly addressed in the new MCA.

However, with the Prime Minister's Office (PMO) emphasising on six-laning of the four-lane national highways, the ministry for road transport and highways seems to be in a dilemma.

The ministry recently approved five stretches coming under the Golden Quadrilateral (GQ) for the six-laning programme, to be implemented as per norms of the new MCA.

The ministry, in fact, does not have a choice in the matter, as the Prime Minister-led Committee on Infrastructure (COI) has approved the new MCA.

In its meeting held in April 2007, it had directed the ministry to award 2,995 km of stretches for six-laning under phase five of the National Highway Development Programme (NHDP). Now the PMO is studying the 'contentious' provisions of the new MCA before getting the Cabinet nod.

According to the new MCA, the National Highway Authority of India (NHAI) has to acquire 80 per cent of the land before the project is put up for bidding. The concessionaires argue that the time period for acquiring the balance land is not clearly specified in the new MCA.

DS Constructions General Manager Rafi Qadar Khan said, "The issue of land acquisition has not been properly addressed in the MCA. The industry has been demanding that a major part of the land should be acquired before awarding the contract, along with an undertaking to acquire the balance land within a specified time frame. This time frame is not clearly specified in the new MCA. Land acquisition has been the single largest reason for delay in projects across the country."

He further said that the new MCA also did not clearly mention the percentage of toll revenue that should be shared between the NHAI and the concessionaires. Echoing similar views, Soma Enterprise Ltd Director Ankineedu Maganti said, "NHAI should expedite the process of land acquisition so that the tempo of awarding projects is maintained."

He added that the concession agreement between the NHAI and the contractor should clearly stipulate the handover schedule for the balance land.