New Delhi: The Government is looking at a fall in the construction and expansion of national highways (NHS) in the next two years, since there has been a reduction in the award of new projects in 2023-24 and the current financial year. However, through the current trend, the Ministry of Road Transportation He is confident in exceeding the objective of building 10,400 km of NHS this fiscal year.
In general, it takes at least two years to build a section of road from the date of adjudication of works.
The sources said the ministry hopes to touch 11,000 km under construction since around 7,000 km have been built so far. Traditionally, the construction rhythm is higher in the February period. “But maintaining this rhythm for the next two years will be difficult since the projects under implementation have been reduced with the tender of less number of projects,” said a source.
Until the third week of January, the award of NH projects was around 4,100, marginally higher than last year. The Ministry has reviewed the objective to offer around 8,000 km. An official said that with the approval of several projects in an advanced stage in the last two months, they hope to cross the figure of last year of 8,581 km.
The Ministry had won a prize of 10,964 km in 2020-21 and increased this at 12,731 km in 2021-22. In fiscal year 2023, it stood at 12,379 km.
The rhythm of the Project Award has slowed as the Government has addressed to the Ministry of Transportation of the Highway does not approve any new project under ‘Bharatmala’, and also, there is no new road development program.
Meanwhile, an interministerial panel that evaluates the main road projects has told the Ministry to accept offers only after acquiring 80% -90% of the land required for projects and obtaining all legal authorizations, such as the forest and the environment. The authorities said that although this condition would affect the rhythm of project award, the measure will reduce delays, cost overflow and disputes.
The sources said that, while road construction agencies must obtain 80% of land for projects that are built under the mode of hybrid annuity (HAM), where private players provide 60% investment. In the case of projects in engineering, acquisition and construction mode (EPC), the authorities must obtain 90% of land; The government assumes the cost of the project.