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Highways Ministry Seeks Easing of Norms to Meet Target

  • To meet its target of awarding 7,300 km of national highways during the current financial year, the road transport and highways ministry has sought exemption from seeking mandatory clearance of the Public Private Partnership Accounts Committee (PPPAC) before starting the bidding process for at least 1,300 km. According to sources, highways minister C P Joshi put this proposal before an empowered group of ministers (EGoM) on Wednesday evening so that his ministry could achieve the target of awarding 7,300km during this financial year.
  • The ministry made this proposal a day after principal secretary to the PM Pulok Chatterjee asked it to expedite awarding 15 major projects entailing construction of 1,547 km during this financial year. Sources said the ministry told the EGoM that if it waited for PPPAC approval, and then took at least 45 days to complete the two level bidding process, they would not be able to achieve the target. "So, the proposal is that we can immediately issue tender for pre-qualification of bidders without waiting for PPPAC approval. We can take these cases to the Cabinet Committee on Infrastructure (CCI) directly next week for clearances," said a source, who did not wish to be named.
  • Joshi declined to comment, though ministry officials said there was consensus at the EGoM for this relaxation. So far, NHAI has awarded 4,691 km of national highways and bidding process is on in the case of another 1,110 km. The EGoM has also largely agreed to the proposal of awarding 9,000 km of NH in the next financial year so that government meets the ambitious target of constructing 20 km per day by 2014 when the next general election is due. However, there are some areas of concern for the NHAI and highways ministry. Sources said in the next fiscal year, budgetary support to the ministry including NHAI would be around 23,000 crore compared to Rs 20,000 crore during this financial year.

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