Active Stocks
Thu Sep 21 2023 15:54:10
  1. Tata Steel share price
  2. 127.8 -0.39%
  1. HDFC Bank share price
  2. 1,553.6 -0.66%
  1. NTPC share price
  2. 238.95 -1.1%
  1. Power Grid Corporation Of India share price
  2. 201.8 -1.42%
  1. ITC share price
  2. 447.4 -1.24%
Business News/ Industry / Roads ministry prepares list of 11 projects to be awarded soon

New Delhi: The roads ministry has prepared a list of 11 projects worth more than 18,000 crore that can be awarded within the next six months.

Transport minister Nitin Gadkari had asked for a priority list of projects that can be processed promptly, an official said, requesting anonymity.

“The appraisal process for most of these projects is complete and we will present these for the approval of the minister. After that a cabinet committee on economic affairs note can be circulated," the official said. “We should be able to award these projects with a six-month timeframe."

The total length

The list includes projects such as Delhi-Meerut expressway and Eastern Peripheral Expressway.

The push comes in the wake of Prime Minister Narendra Modi calling for a review meeting for different sectors that is expected to be convened soon.

“We will include the list of these projects too in the presentation to be made to the Prime Minister," said another official, confirming the development. He too requested anonymity.

Gadkari held a review meeting with ministry officials on 2 June to discuss the issues stalling growth in the roads sector and the targets set for this year.

“We should be able to do much better this year. We are working to revive private sector interest. We have awarded nearly 1,300 km of road projects in the two months of April and May, which is encouraging," said the second official. The road sector has seen a sharp deceleration in activity over the past two years because of a slowing economy, delays in securing clearances and drying up of bank finance.

The ministry awarded just 3,169km of projects in the year ended 31 March against a target of 7,500km. In the previous year, it awarded 1,322km of projects against a target of 9,500km.

“The ministry will be able to award these projects as long they ensure the projects are viable. Overall the sentiment has improved," said Parvesh Minocha, managing director of Feedback Infrastructure Services, an infrastructure services company. “There are companies who have the resources to undertake these projects but are only waiting for good projects. On the other hand, most other developers, who are in a financially tight spot, are not in a position to put spoiling bids. The era of aggressive bidding is behind us."

Meanwhile, after failing to get any bids for the eastern peripheral expressway, the roads ministry has decided to bankroll it through taxpayer money. The inter-ministerial group that met on 30 May has given an in-principle approval to invite bids for the project afresh under the engineering, procurement and construction mode, two road ministry officials said, requesting anonymity.

The proposal for the 135 km highway failed to get any bids despite being kept open for months. The project cost is estimated at 4,500 crore. “There are concerns about how much traffic will actually be diverted to use the expressway," one of the officials said. “That is mainly why the private sector did not come forth." The ministry is also exploring the option of seeking a loan from Japan International Cooperation Agency.

The highway project that aims to decongest traffic through the capital has been stuck since 2007 because of several controversies. The ministry revived it last year after addressing issues relating to toll fees and some engineering specifications. The previous UPA had a set a deadline to award this project by 31 December, which it failed to meet.

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Updated: 06 Jun 2014, 12:59 AM IST
Next Story
Recommended For You
Switch to the Mint app for fast and personalized news - Get App