Ministry of roads to consider joint ventures with global companies for better infrastructure development

Nitin Gadkari said if a project costs over Rs 1,000 crore, there should be a joint venture with a foreign company for the DPR, with that company having a 51% stake.
The majority stake for foreign firms aims to block incapable Indian businesses.
The majority stake for foreign firms aims to block incapable Indian businesses.(Photo | Express)
Updated on
2 min read

NEW DELHI: As Union Road Transport and Highways Minister Nitin Gadkari often criticises the “poor quality” of detailed project reports (DPRs), the ministry may actively consider a proposal to allow joint ventures with international companies having a majority stake for preparing the blueprint for effective planning, execution and monitoring of infrastructure development.

According to some sources in the know about the matter, Gadkari chaired a meeting on DPRs earlier this month and discussed bringing in changes in the existing arrangements. “There was a long meeting in which deliberations were held about introducing changes in the system. Suggestions have been taken from the stakeholders,” a source said.

The minister reportedly suggested if a project costs over Rs 1,000 crore, there should be a joint venture with a foreign company for the DPR, with that company having a 51% stake.

Officials said that the proposal of the international collaborator holding a majority of the stake is meant to prevent Indian businesses, which do not have the capabilities, from taking over such projects.

The minister has reportedly suggested a 49-51% joint venture for DPRs. “He often says that otherwise, local firms will tie up with the companies abroad just to qualify for the bid. The possible change will only allow technically qualified and serious bidders to participate,” the source explained.

Notably, Gadkari batted for international partnerships during the Global Road Infratech Summit & Expo organised recently by the International Road Federation’s India Chapter in Delhi. He pinned the blame for the high rate of road accidents in the country on civil engineers and faulty project reports. He stressed that a joint venture system could make quality DPRs possible.

He even recommended the registration of an FIR against those responsible for the faulty DPRs for road construction that result in fatal road accidents. “The most important culprits are civil engineers… I am directly taking the name because after 10 years of my experience, I am coming to this conclusion. The most important culprit is who makes the DPR. And there are thousands of mistakes… persons who are responsible, we should register an FIR against them and take them in custody,” Gadkari said.

“Our system should be qualitative. We need to reduce the number of accidents. You see what is going to happen in the world,” the minister added.

The minister has, time and again, flagged the issue of “faulty” DPRs and blamed them for the delay in projects and road accidents. Gadkari has used different forums to slam the bureaucratic set-up, stating that it takes years to improve or rectify faults in road designs while road mishaps continue to claim lives.

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