Infrastructure development will play an important role in fulfilling the vision of India in becoming $5 trillion economy, says Nitin Gadkari, Union Minister for Road Transport & Highways.
Union Minister for Road Transport & Highways (MoRTH) Nitin Gadkari has urged investors to come forward and invest boldly in the infrastructure sector, which offers a diverse array of investment opportunities spanning multiple asset classes including Highways, Multimodal Logistics Parks, Wayside Amenities, Ropeways, Warehousing Zones and more.
Gadkari said “the Internal Rate of Return in the road sector is very high and hence there is no need to worry about economic viability”.
The Minister said that earlier, projects used to get stalled due to land acquisition issues. But we decided, project will not be awarded before 90 per cent land acquisition is complete and environment clearance is obtained. Citing various other steps taken by his Ministry to speed up road infrastructure projects, the Minister said “Keep your confidence 110 per cent”
Cooperation between Central and State Governments
Gadkari called for cooperation between Central and State Governments for infrastructure development of the country. He said that the infrastructure development will play an important role in fulfilling the vision of India in becoming $5 trillion economy.
While inaugurating a Conference on “PM-Gati Shakti” for the South Zone, organized by the Ministry of Road Transport and Highways (MoRTH), he said cooperation and communication needs to be enhanced between State and Centre. He welcomed suggestions from the States for making the programme a success.
Economic Corridors Under Bharatmala Pariyojana
9,000 km length of economic corridors has been envisaged for implementation under Bharatmala Pariyojana Phase-I. Out of which, projects comprising length of 6,087 km have been approved/awarded and the remaining length is planned for award in next 2 financial years. As of now, length of 1,613 km has been completed and balance length is targeted for completion by year 2026-27, said Gadkari.
Construction Cost of Roads
There is provision of price adjustment in contract agreement of highway projects linked to WPI/other indices. The contractor gets compensated as per provision of contract agreement for increase in prices of steel, cement and
other inputs.
Indian Road Congress and MoRTH have issued guidelines for use of waste materials having cementitious properties like flyash, ground granular blast furnish slag in concrete to reduce cement content in concrete. MoRTH has issued detailed guidelines on 14.12.2020 to use new/ alternative materials and technologies in construction of highways. Some of such materials/technologies also help in reducing steel and cement in road construction. For example, use of ultra-high performance fiber reinforced concrete has recently started on National Highways Projects which considerably saves quantity of steel and cement.
Status of National Highways
The total length of National Highways (NHs) in the country has increased from about
91,287 km to about 1,40,937 km since April, 2014 till date.
Various steps are taken up by the Government to monitor and check the construction
quality and work progress of NHs. All NHs are constructed as per quality standards specified in the Ministry and Indian Roads Congress (IRC) specifications. The sub- standard works found, if any, are rectified and re-laid as per specifications. This is ensured by appointment of consultants as Authority’s Engineer/ Independent Engineer for day-to-day supervision for implementation of quality assurance/control as specified in contract/ concession agreement. In case of any defaults, action against defaulting agencies are taken as per the provisions
of agreements.
Out of total 110 NHs languishing projects in about 9,250 km length entailing estimated investments of more than Rs 1,77,000 crore, 54 projects have been completed in about 3,680 km length costing about Rs 49,000 crore with policy interventions such as One Time Fund Infusion Scheme (OTFIS), substitution, suspension, regular monitoring, review and corrective action, etc.; 49 projects in about 4,970 km costing about Rs 1,13,000 crore are in various stages of progress and are targeted for completion by FY 2023-24.
Bharatmala Pariyojana Phase–I, approved by the Cabinet Committee on Economic Affairs (CCEA) on 24.10.2017, includes development of 24,800 km length of Greenfield Expressways / Access Controlled Highways / Economic Corridors, Inter-corridor and feeder roads including National Corridors Efficiency improvement projects, Border and International connectivity roads, Coastal and port connectivity roads and balance subsumed about 10,000 km under National Highways Development Projects (NHDP). So far works in about 19,482 km have been awarded and completion in about 7,952 km length has been achieved under the programme.
The programme inter-alia envisages development of about 22 Greenfield Expressways / Access Controlled Highways in about 8,400 km length for a total cost of about Rs. 3.6 lakh crore. So far, projects in about 5,065 km have been awarded for total capital costs (TCC) of about Rs 2,30,489 crore; out of these works in about 1,225 km have been completed. Projects in about 500 km with TCC of about Rs 26,012 crore are at bidding stage; balance length of about 2,844 km are at preconstruction / project preparation stages entailing approximate TCC of more than about Rs 1,00,000 crore; these projects are targeted for award during current financial year 2021-22 and 2022-23 in phased manner. All these projects are targeted for completion in phased manner by 2024-25.
The Ministry has also initiated conceptualization of additional 27 Greenfield Expressways / Access Controlled Highways for approximate total investment of about Rs 3.6 lakh crore.
Some of the other major projects providing critical linkage completed during December, 2017 onwards are Eastern Peripheral Expressway (135 km costing Rs 4,418 crore), Delhi-Meerut Expressway (82 km costing Rs 8,346 crore), Shillong – Nongstoin – Tura (261 km costing Rs 2,319 crore), Nechipu – Hoj (252 km costing Rs 2,037 crore), Babatpur – Varanasi connectivity (17.25 km costing Rs 813 crore), etc.
In general, out of total length of about 6,000 km, projects in about 5,645 km have been awarded under Phase A of Special Accelerated Road Development Programme in the North East Region (SARDP-NE) including Arunachal Pradesh Package of roads and completion has been achieved in about 3,975 km.
Out of 5,422 km length of NHs / State road projects awarded under special scheme for development of roads in Left Wing Extremism (LWE) affected areas costing Rs 8,996 crore, 5,038 km have been completed. All the balance
works are targeted for completion by 2022-23.
Out of total 53 projects in about 890 km under entire Chardham Mahamarg Pariyojana, 38 works in 647 km costing
Rs 8,379 crore have been awarded out of which 25 works amounting to Rs 6,470 cr. in length of 474 km have commenced and 13 works amounting to Rs 1,908 crore in 172 km have been completed. Overall 561 km length have been completed so far. Total expenditure of Rs 5,730 crore have been incurred so far. The projects are targeted for completion by December, 2024.
Of about 1,100 km identified under National Highway Interconnectivity Improvement Programme (NHIIP) under World Bank Loan Assistance, projects in about 990 km have been completed with total expenditure of about Rs 5,565 crore.
Under Green National Highways Corridor Project (GNHCP) under World Bank Loan Assistance, development of about 781 km length of NHs are envisaged in the States of Himachal Pradesh, Rajasthan, Uttar Pradesh and Andhra Pradesh, with loan assistance of the World Bank with a total loan amount of $ 500 Million and total project cost of Rs 7,662.47 crore. Projects in 288 km have commenced so far.
Projects for development of about 807 km NHs costing about Rs 19,500 crore have been awarded under Japan International Cooperation Agency (JICA) Loan Assistance. These projects are targeted for completion in a phased manner by December, 2028.
About 14 major bridge / tunnel projects in about 108 km costing about Rs 18,173 crore have been completed under various programmes since 2015-16. Further 27 such projects, awarded since 2016-17 in 196 km costing Rs 29,374 crore, are targeted for completion in phased manner by 2024-25.10 more tunnel projects in about 43 km with approximate costs of about Rs 8,270 crore are at project preparation stages, as per Gadkari.