Despite EPC switch, no road project awarded since May
- Proponents of Article 370 should say how it has helped J&K: Rajnath Singh
- 1984 riots: Akalis protest over Capt Amarinder Singh's clean chit to Jagdish Tytler
- Supreme Court issues notice to Goa Police, agrees to hear Tejpal's bail plea in sexual assault case
- SC allows annual cap of 20m tonnes of iron ore mining in Goa
- Elections 2014 LIVE: Pt Channulal Mishra backs Modi but Bismillah's family won't
Since May this year, the National Highways Authority of India (NHAI) has failed to award even a single highway development project. This is despite the authorities taking a decision to shift to the EPC (Engineering Procurement Contract) format for offering projects to developers, primarily to tide over the lacklustre response seen from private players to the other public-private partnership (PPP) formats that includes highway sections offered on the Build, Operate and Transfer (Toll) model.
This is the second consecutive year after 2012-13 when award of road projects has seen a dismal show. Last fiscal, awards had touched a low of 800 km.
"The slow pace of award is essentially because of the slowdown in the economy and we are finding it difficult to find takers for our projects, especially those offered on the PPP route. Projects on EPC are also not coming up for bid, as they are in various stages of the project design process," said a senior NHAI official.
This slow pace of award is despite the fact that the EPC projects offered in April received interests from as many as 28 bidders per project. The developers also lowered project cost quotes by as much as 45 per cent than the NHAI's benchmark cost. The highways authority had been able to award 475 km of road projects in April, of which 355 km of road projects were on EPC and the rest were awarded on Build, Operate and Transfer (Toll).
In an EPC project, the contractor has to quote the cost of constructing or upgrading the road section, which is completely funded by the government. Every project has an estimated project cost and the developer offering to complete the project at the lowest cost gets it. A BOT (Toll) project, on the other hand, is a form of PPP project where the developer builds the road and recovers his investment through toll to be collected over a concession period.
- 21-year-old dies in road mishap, one injured
- Ask Badals where is Ludhiana Metro: Bhattal to locals
- Arrests in priest murder case divide Catholic Church
- Short Change: EPFO to allot permanent account number to active subscribers by Oct 15
- India Inc profit set to grow, but margins under pressure
- Mulayam: Will amend Constitution for Muslim quota