To infuse new life into the stalled highway projects, the Ministry of Road Transport and Highways has circulated a Cabinet note on a proposal to bring in a new model for execution of highway projects.
Infrastructure, especially highway projects have come to a standstill following the economic slowdown and also due to issues ranging from land acquisition, environmental clearances and unwillingness of investors to pump in any further capital in the sector.
“We have circulated the Cabinet note for a new EPC ( Engineering, Procurement Construction) model for upcoming road projects in the country,” a ministry official said.
National Highways Authority of India (NHAI) had last year had suggested a Defect Liability Period proposal (see box) as it would minimise the role of the government in construction of the project.
As per the proposed EPC mode the projects would be awarded outright.
At present because of constant change in the road concession agreements project delays have become imminent due to which many investors have chosen to stay away from the road sectors.
NHAI has set a target of 20,000 km for double laning and plans to award contracts for 6 000-7 000 km every year. National highways contribute over 71,000 km to the total road network of 33 lakh kilometres of the country.
Meanwhile, the government is finding it difficult to implement road projects in the country due to land acquisition hurdles. Projects worth `15 000 crore are stalled because of land acquisition issues. These projects are spread across West Bengal, Kerala, Goa and Tamil Nadu.