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Road Ministry will miss the target of awarding 9,500 km highways projects in this fiscal ending March 31 due to financial constraints, among other issues, Road Minister C P Joshi said today.
"Yes, it is clear the target would be missed, there are various factors ... Mainly financial issues which are responsible," Joshi told PTI when asked whether the ministry will miss the target of awarding 9,500 km highways projects set for this financial year.
The ministry as well as the National Highways Authority of India (NHAI) are already facing problems because of major infrastructure firms pulling out of projects.
Private infrastructure companies GVK Power and Infrastructure and GMR Infrastructure announced termination of their contracts with NHAI in January for building a major highways in Madhya Pradesh, Rajasthan and Gujarat.
Various private companies in the road sector have time and again raised the issue of a conservative and rigid approach by banks in providing loans to the highways projects with the Road Transport and Highways Ministry.
Delay in environment clearances has also impacted implementation of projects, they have said.
On the proposed Road Regulator, Joshi said, "During the Parliament break we will discuss the matter (Road Regulatory Authority Bill) within the ministry."
Finance Minister P Chidambaram announced setting up of a Road Regulator as the road construction sector has reached a certain level of maturity but continues to face challenges, including financial stress, enhanced construction risk and contract management issues.
The government is of the view that these issue would be better addressed by a Road Regulator.
