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Maintenance of National Highways to be outsourced to pvt cos

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Press Trust of India New Delhi
Last Updated : Jan 25 2013 | 4:04 AM IST

"Undertaking Operation and Maintenance of the National Highways on Operation, Maintenance and Transfer (OMT) basis" has been approved by the Cabinet Committee on Infrastructure (CCI), an official statement said.

Also, the CCI gave ex-post facto clearance for six OMT projects on East-West corridor measuring 963 kms which have been awarded after the approval of Standing Finance Committee and the ministry concerned.

The policy decision will ensure regular maintenance of the upgraded national highway sections at least for period of concession without any liability to the government," Road, Transport and Highways Minister C P Joshi told reporters.

"Now we made a policy... After the construction (of roads) the maintenance would be done under OMT and those build by public money will be maintained under OMT," he added.

Under the OMT basis of public-private partnership (PPP) mode, the operation and maintenance of the roads is outsourced to a private entity for a definite concession period of 4-9 years.

During the concession period, the concessionaire is required to maintain the stretch for a period almost equal to the life of the renewal work before the necessity to upgrade such stretch so arises.

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Presently, the maintenance of stretches implemented through public funds is done separately through short-term operation and maintenance contracts and user fee is collected through different agencies.

Change of maintenance or toll contractor on annual basis by calling bidding process every year consumes considerable time and energy without delivering the good maintenance of roads, the statement added.

  

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First Published: Aug 17 2012 | 8:20 PM IST

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