NEW DELHI: UPA's claim to build 20 km highways per day to counter NDA's record of highways construction seems to be falling flat. NHAI, the country's highway development body, admitted that awarding 20 km highways per day was "unsustainable" and that construction of 10-11 km highways per day would meet the requirement for the next few years.
NHAI chairman R P Singh made this observation at an industry summit organized by Ficci on Thursday amid signs of private concessionaires showing no interest to bid for projects. Singh added that there was a need to balance between the "expectation" that has been set and what is "realistic and sustainable", though in 2011-12, NHAI had awarded over 7,000 km. The 20-km target was first announced in 2009 by the then highway minister Kamal Nath to increase the construction from 4 km a day then. NDA had a record of about 15 km highway construction per day during its regime.
Singh said NHAI had at least posted 25% increase in highway construction during 2012-13 against the previous year, meaning completion of between 2,500 and 3,000 km.
He cited falling commercial traffic, non-availability of equity and debt in the market, escalation in construction cost and increasing reports of locals protesting against toll collection as reasons behind the slowdown in highway awarding. He said if NHAI has to award 7,000 km on toll mode and another 3,000 km by highways ministry and state agencies annually, there would be a need of Rs 30,000 crore as equity and another Rs 60,000 crore as debt from financial institutions. Singh asked the industry players whether this was sustainable.
Singh also said the plan to build roads on Build Operate and Transfer (BOT) model completely was not sustainable. "With elections approaching, we might see more instances of local leaders and political parties opposing toll collection."
He added that government has a responsibility to provide highways for free to the public. "States must increase their capital expenditure," he said while stressing on the need for states to build highways where the cost would not be recovered from toll collection.
Raising the issue of annual revision of toll charges on all BOT stretches, Singh said toll fees should be sustainable and not linked to inflation.
Building 20 km of highway a day not sustainable: NHAI chief
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Building 20 km of highway a day not sustainable: NHAI chief
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Building 20 km of highway a day not sustainable: NHAI chief
