English Release 25-July 2014
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Ministry of Road Transport & Highways16-April, 2013 17:32 IST
|Dr. C.P. Joshi Sets Target for Revival of Road Construction Sector
7300 Km of National Highways to be Awarded During 2013-14
More Than 50% Projects to be taken up on EPC Mode |
|Dr. C.P. Joshi, the Union Minister of Road Transport and Highways, reviewed here today the plan for award and completion of road works during the current Financial Year (FY) 2013-14. The plan has been prepared by Ministry of Road Transport and Highways (MoRTH) along with National Highways Authority of India (NHAI). The thrust of the review meeting aimed at identifying steps for restoring the pace of award of road projects in the coming year. As a part of this exercise, scheme-wise targets were set for each month of the financial year. The Ministry is now looking beyond the target of award of 3,000 kms on National Highways in the first six months as announced by the Finance Minister in his budget speech. Accordingly, Dr. C.P. Joshi has finalised an initial target for the Ministry/NHAI of 3800 kms in the first six months. For the FY 2013-14, the internal target has been fixed at 9000 km of National Highways so as to ensure award of at least 7300 km during the year. |
The target set by MoRTH for the current FY factors into account the subdued market sentiments and the tepid response to bids in respect of PPP projects. The strategy aims at striking a balance between the projects on PPP mode and thus supported through the budget. The plan envisages more than 50% of the projects to be taken up on Engineering Procurement Construction (EPC) mode. This approach aims at rejuniuvating the road construction industry.
The review meeting comes in the back drop in an extremely challenging period last year where award of road projects declined to 1933 kms on account of several impediments. The impediments included lack of equity with road construction companies, and the overall economic environment which affected sentiments including that of lenders.
Despite the poor response for award of road projects during the last financial year and failure on the part of concessionaire to achieve financial closure, the Ministry is targeting completion of 4500 km of road length during the current year under its flagship schemes of NHDP, SARDP-NE and Left Wing Extremism (LWE) which is more than the record achievement of 4250 km during the last financial year.
(Release ID :94718)