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<p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Two big highway projects which were pushed as mega projects in the name of attracting international investors are under the Comptroller and Auditor General&#39;s (CAG) scanner. Both NHAI and highways ministry are now struggling to find reasons for clubbing small stretches to make them bigger when these did not help reduce the burden on the exchequer. Rather, in one case, the toll collection period increased after two stretches were clubbed together.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The first case is of 4 laning of Nagpur-Betul (212 Km) stretch in Maharashtra and Madhya Pradesh, which has been in controversy and was investigated by CBI.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The CAG has pointed out that the 155 Km stretch of this project falling under MP should have been upgraded to only two-and-half lanes since the traffic was less. Only by 2024 it would be eligible for four laning based on the traffic growth norms. But the second portion falling in Maharashtra was fit for 4 laning. The CAG has observed that the 57 Km could have been awarded on BOT toll mode where private developer has the risk of recovering investment.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">But both the stretches were clubbed for four laning. Since major portion of corridor had less traffic, the entire stretch was awarded on BOT annuity mode where NHAI pays back the cost and profit to private developer in installments. NHAI&#39;s payout will be at least INR 4,880 crore.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">It was awarded in March 2010. CAG has pointed out that in case the two stretches were awarded separately, the government outgo would have been only INR 2499 crore, sources said.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">In the second case, CAG has raised questions on clubbing of Beawar-Pali and Pali-Pindwara stretches in Rajasthan. Beawar-Pali was 115 Km and 4 laning cost would have been INR 816 crore. The second stretch was 129 Km and its expansion would have cost INR 1,014 crore. So, the two separate projects would have cost a total of INR 1,830 crore. But after adding both the stretches the total cost went up to INR 1,922 crore. The concession period for toll collection for Beawar-Pali-Pindwara stretch increased to 23 years.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">In case Beawar-Pindwara was awarded independently the toll period calculated would have been 21 years. Similarly the contract period for the second would have been 19 years. &quot;The CAG has sought response on why the stretches were clubbed,&quot; a source said.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The project was awarded in March 2011.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Source-On Request</span></span></span></p>