Snehil Sinha, Hindustan Times Gurgaon,
In recent times, almost every big-ticket development project in the country has run into controversy regarding finances; the high-profile Delhi-Gurgaon Expressway was no exception it seems. If all the other issues were not enough, the expressway, as records reveal, was also charged with financial irregularities.
The Comptroller and Auditor General’s (CAG) report in 2008 found lapses on the part of both the National Highways Authority of India (NHAI) and the expressway concessionaire in maintaining financial records of the funds used for the construction of the Delhi-Gurgaon Expressway.
The CAG report mentioned that neither were the escrow account norms followed nor were independent auditors appointed on time to review the books. This seemingly irresponsible lapse in following official procedure exhibits the lack of interest on the part of the authority as well as the concessionaire to check embezzlement of funds, which is quite common in case of such big projects.
Such and other instances of irregularities were further proven when the independent auditors, appointed after a delay of about six years, submitted their financial report for the period from 2002 to 2008.
The auditors observed that there were differences to the tune of Rs. 2.16 crore — both in cash collection and on-board unit collection —in the financial records as well as the software-generated reports. “According to the independent auditors, this has raised a question mark on the accuracy of the traffic report and whether even the revenue sharing had been done properly,” the report states.
The parliamentary committee reviewing the audit report had stated that this matter of inaccuracy in the financial records of the concessionaire “should be properly inquired into and all necessary action may be taken against the concessionaire in case some mischief is detected and penalty may be imposed accordingly”.
According to the CAG, the authority should have an effective monitoring mechanism for ensuring that funds released for a particular project are actually utilised for the project.
This is done through the operation of an escrow account by the concessionaire who is required to forward monthly escrow account reports to the NHAI. However, the copies of the reports were neither submitted by the concessionaire nor were they sought by the highways authority.
But the concessionaire claimed otherwise. “As a concessionaire we have been regularly sending the escrow account statements to the NHAI every month and also whenever they specifically ask for it,” said a spokesperson of expressway operator Delhi-Gurgaon Super Connectivity Limited.
As per the concession agreement, the NHAI also has the right – though not an obligation – to appoint independent auditors at its own cost to audit and verify all matters, expenses, costs, realisations and other assurances. However, the CAG report revealed that the independent auditors were not appointed by the NHAI within the stipulated time though an audit was in its own interest.
The report further said that the NHAI had admitted the lapses on their part and submitted that it had directed the concessionaire of the Delhi-Gurgaon Expressway project to maintain the escrow account in line with the concession agreement.
The NHAI also took a stand that it was not mandatory on their part to appoint independent auditors explaining the delay.
Source-http://www.hindustantimes.com
Written by ITW Editor · Filed Under NHAI
Ashish Roy & Abhishek Choudhari, TNN |
NAGPUR: The 40km stretch from Mansar to Khawasa on NH-7 resembles anything but a road today. To call it ‘pothole ridden’ would be an understatement, since the potholes have turned into almost two-feet-deep ditches, almost throughout this stretch. The road, unworthy of being called a national highway, has gained notoriety for accidents, long traffic snarls and damaged vehicles.Sadiq Qureshi has been ferrying passengers daily between Kamptee and Khawasa in his private taxi for the last nine years. He has never seen the stretch is this dangerous a condition. “It was always bad, but this monsoon seems to have taken everything out of it. The tar has been washed away completely, and huge ditches are the norm. Our taxis are loaded with people and maneuvering loaded vehicles through the ditches is risky. I have seen two trucks tip over this month alone, just beyond Deolapar village. The ditches are so deep that balancing a loaded truck is tricky in the day, and impossible in the night,” said Qureshi.For truck owners, driving on this stretch is akin to a death wish for their vehicles. But with fixed transport routes, they have few options. Truck driver Komal Singh Parmar said, “I frequently travel on this road and ferry goods from Uttar Pradesh to southern states, as it is the shortest route. Since Holi, I have replaced three tyres as they got damaged. After monsoon, the conditions have become horrible. The stretch is bad enough to break the axle of a fully loaded transport truck.”Traffic on this route literally crawls, taking 90 minutes on an average to travel the 40km stretch. At the really bad spots, trucks face off for hours together, as only one can pass at a time.Truck driver Naman Sheikh said, “Just beyond Deolapar village, there is a small bridge that is clearly the worst patch on this route. Navigating those 20-30 meters is the most challenging tasks for us, as even the slightest slip will result in the truck tipping over. When that happens, there’s bound to be a traffic jam for six to seven hours.”
As far as repair and maintenance go, the 40km stretch is a no-go zone. The National Highway Authority Of India (NHAI) has leased the road for 28 years to Oriental Structural Engineers (OSE), on build-operate-transfer basis. But a part of the project is stuck because of objections from the forest department.
NHAI chief engineer Arvind Kale said, “We had signed a contract in 2006 with OSE to turn the entire 117km road from Khawasa border to Borkhedi into a four-lane highway. The 40km stretch from Mansar to Khawasa is also part of this contract, and 30km of this comes under forest land. This stretch could not be four-laned because the Supreme Court struck down the project as it would affect Pench National Park.”
With the project in doldrums, NHAI claims to have worked out a compromise formula. Kale said, “The proposed width of this road was 60 metres, but we decided to construct a 30 metre wide road instead. The revised proposal was sent to the state government, which forwarded it to the union ministry of environment and forests (MoEF).”
OSE has washed its hands of the issue, admitting that it got the contract but NHAI never handed over the Mansar-Khawasa stretch to it. Prashant Bargi, local representative of OSE, said, “We are currently maintaining the stretch from Borkhedi to Ramdham (just before Mansar). We have not been handed over the remaining stretch yet, it remains with NHAI.”
Asked about the horrific road conditions and threat to human life, Kale said maintenance of the stretch is under consideration. “We are hoping the MOEF clears the revised four-laning proposal soon, else we will go ahead with the repair work. The damage is due to very heavy rainfall this year. NHAI had prepared an estimate for road repairs, but after our senior officials inspected the stretch we realized the estimate needs to be revised upwards,” said Kale.
The files and permissions related to road construction and repairs seem to be stuck in red tape, and progress is slower than the traffic on this road. DM Reddy, a civil contractor and social activist based in Ramtek, said, “Trucks line up for hours and accidents occur by the dozens as the road condition deteriorates by the day. Residents all along this killer highway are living in constant fear, not knowing which acquaintance or relative will be claimed by the road next. Our public representatives have failed us, and now we can just resign ourselves to fate.”
For tourists headed to wildlife sanctuaries like Pench or Karmazari, the adventure begins much earlier in their journey. The horrific condition of the stretch of road from Mansar to Khawasa makes driving a treacherous and risky proposition. With tiger reserves set to open in October, the local travel industry is worried about the adverse impact on not only tourism revenues but also tourism reputation.
Chandrapal Choukasey is a member of the National Tourism Advisory Council (NTAC) and says the tourism business is being ‘wiped out’ due to bureaucratic hurdles. “The reputation of our region will plummet once tourists travel on that road. We are bringing in tourists from overseas and different parts of the country to showcase our majestic tigers but the National Highway Authority of India (NHAI) seems to be hell bent on ensuring that tourists never return. Even though Karmazari is in Madhya Pradesh, the road and airport used to get there belongs to us. It is Nagpur’s reputation at stake but NHAI and the contractor, Oriental Structural Engineers, are least bothered,” said Choukasey who also has stakes in the tourism business near the Mansar-Khawasa stretch.
The impact on tourism has already begun to show as Sandeep Singh, secretary of Pench Jungle Lodges’ Federation (Madhya Pradesh), says the pathetic road conditions are scaring off tourists. “I reside in Nagpur and take that road every week and can say that it is not fit for driving anymore. We have had cases of where tourists coming from Nagpur have turned back, leading to many bookings being cancelled. We have been in touch with NHAI but there has been very little progress on road maintenance. The forests will open for tourism on October 16 and there is no doubt that the road condition will affect tourism,” said Singh.
MS Tuli, a veteran hotelier with a high end property at Pench, says anywhere in the world, tourism industry’s fortunes are directly connected to transportation facilities. “I would not say the road between Mansar and Khawasa is bad because I think there is no road there at all! It is extremely embarrassing to bring in tourists from all over the globe and set them off on a 40km stretch of ditches and trenches. A foreigner comes from Mumbai to Nagpur in 75 minutes but then discovers that it takes minimum two hours, sometimes three, to reach Pench. After such a bad experience the word spreads and tourism will take a toll if the highway is not repaired this year. I don’t understand why they can’t fill up the ditches with murum (red gravel) so that at least the ride for tourists is comfortable,” says Tuli.
Resort owners assert that with more options of tiger tourism available near Nagpur, a considerable traffic can be drawn away from Pench if the roads are not repaired with urgency.
While the residents of Ramtek are angry over National Highway Authority of India (NHAI) and its contractor Oriental Constructions for the abysmal shape of Mansar-Khawasa road, the shifting of toll plaza from Tekadi to Amdi (opposite Ramdham) has also invited controversy. The matter had reached the Supreme Court and the court ruled in favour of Oriental Constructions.
If you travel from Kanhan to Mansar, you cross a small village called Tekadi and then come at a T-point called Amdi Phata. The road towards left goes to Parsheoni and Saoner. On travelling further you reach Amdi village and then finally Mansar.
Earlier, the toll plaza was at Tekadi. However, according to Ramtek politician DM Reddy, it was shifted to Amdi so that the traffic from Raipur, Bhandara and Gondia towards Bhopal would be forced to pay toll for using just 3 km of the toll road. “Many people travelling from Chhattisgarh, Gondia and Bhandara travel to Bhopal using the Tumsar/Bhandara-Ramtek-Mansar-Amdi Phata-Saoner-Multai route. When the toll plaza was at Tekadi such vehicles did not pay any toll,” Reddy said.
“Very few people travel from Kanhan to Parsheoni and Saoner using Amdi Phata and hence the loss of toll due to closure of plaza at Tekadi is minimal,” he explained.
Mahendra Lule, office-bearer of private bus operators’ association, said that the plaza was moved from Tekadi to Amdi to compensate for revenue loss at Dongargaon toll plaza. “We had intervened in SC in the petition opposing shifting of the toll plaza to Amdi but unfortunately the SC did not hear our plea,” he said.
The Nagpur bench of Bombay high court, hearing a case filed by Butibori Manufacturers Association (BMA) had held that both the toll plazas at Dongargaon and Amdi were illegal. Oriental and NHAI appealed against it and the SC allowed them to set up plazas at Borkhedi and Amdi, the two ends of the toll road. BMA did not object to this decision as its problem was solved.
Prashant Bargi of Oriental Constructions said the toll plaza was at the spot mentioned in the agreement between NHAI and his company and there was no irregularity involved.
Politicians take to streets even if condition of district roads is half bad as that of NH 7 between Mansar and Khawasa. However, as the 40km stretch passes through Pench national park and Mansinghdeo wildlife sanctuary and has very few villages, no politician has taken the issue seriously.
Ramtek MP Mukul Wasnik could have easily got it repaired given his clout in New Delhi. However, he rarely bothered to visit it until a few months ago. Deolapar residents say Ramtek MLA Ashish Jaiswal too does not bother about their area as there are not many votes there. “He concentrates on Ramtek area, which is quite populated,” a resident said.
When MLA Jaiswal, who is from Shiv Sena, was asked about the condition of the highway he shrugged off his responsibility saying that the 40km stretch was being maintained by NHAI and hence it was the responsibility of MP Mukul Wasnik to take up the issue. “Had it been a state highway, I would have got it repaired by pressuring the state government,” he claimed.
Jaiswal had promised TOI on Friday to show the bad stretches and arrange meeting with local residents suffering because of the abysmal condition of the road. On Sunday morning, TOI tried to contact him several times but he neither responded to SMSes nor took any call. On Monday, he claimed he was indisposed. Krupal Tumane, Shiv Sena leader who contested against Wasnik in 2009 general elections, too blamed Wasnik. “The MP is just not interested in getting the road repaired. People are angry with him. About three months back, they had gheraoed him between Mansar and Paoni. He assured to get the road repaired within 15 days but nothing happened,” he said.
On the efforts he had made in this regard, he said, “We had staged a road blockade some time ago. We also met NHAI chief engineer Arvind Kale but to no avail. If NHAI doesn’t listen to Wasnik, what can people like me do?”
D M Reddy, an independent candidate who contested against Jaiswal, claimed he was the only politician taking up the issue. “I had led the road blockade in Deolapar two months ago. MP Mukul Wasnik and MLA Ashish Jaiswal did not even visit for a minute. Jaiswal lives just a few kilometres away but even then he did not come though it was an apolitical agitation. This in spite of the fact that about 125 people have died in last two to three years,” he said.
Chandrapal Choukasey, Congress candidate who contested against Jaiswal in 2009, defended Wasnik. “It was due to Wasnik’s efforts that Rs7 crore were sanctioned for repairing the road. However, Orient did not do anything and the money lapsed. It is completely their fault. About 100 people have died and thousands, who travel on the road regularly have developed back trouble. State government’s forest department is also responsible for delay in forwarding the file to centre,” he said.
Source http://timesofindia.indiatimes.com
TNN |
NAGPUR: Nagpur bench of Bombay high court, on Thursday, ordered a status quo on National Highway Authority of India’s (NHAI) decision to construct a flyover at Butibori T junction. A division bench comprising Justices Bhushan Gavai and ZA Haq also issued notices to the respondents asking them to file a reply within three weeks, after which the case would be taken for disposal. NHAI general manager, regional manager and project director in Nagpur, MIDC executive engineer and Oriental Nagpur Bypass Limited at Dongargaon were made respondents in the case. Srikant Khandalkar was counsel or the petitioner Umesh Chaube, a social worker.
According to Khandalkar, NHAI through its communication of May 29 had granted permission for the construction of flyover at Butibori T junction on National Highway No 7 going to Hyderabad that will connect internal MIDC road. He also blamed the union minister for social justice and empowerment for writing a letter for constructing the flyover at MIDC junction without going into the factual aspect. He contended that there is no need for flyover and traffic congestion can be solved through extending the existing road to 60 metres.
Source-http://timesofindia.indiatimes.com
Siddhartha Rai, Hindustan Times Gurgaon,
With Union minister for road transport and highways Oscar Fernandes himself working on a solution to ease traffic congestion on the Delhi-Gurgaon Expressway, we think that something has finally been achieved after 50 editions of HT’s “Taking a Toll” campaign and it is time to take the endeavour to the next level.
As the minister visited the problem areas on the expressway and interacted with the people, the first-hand experience of people’s frustration and ire moved him to announce the proposal for an elevated bridge at Hero Honda Chowk.
“The flyover will cost nearly `100 crore and take 18 months to construct, but it will be a permanent solution that will go a long way in easing the traffic flow on this stretch of National Highway-8. We will also plead with the court for an early resolution to the expressway issue,” Fernandes had told HT after a meeting with Haryana chief minister Bhupinder Singh Hooda, as the two met at Transport Bhawan, New Delhi, on Wednesday.
For the people
HT had turned its attention to the expressway after a public outcry over the project that had originally been conceived to catapult Gurgaon to the league of global business cities, but has eventually become a thorn in the side of residents.
HT took up cudgels on behalf of hapless people reeling under inordinate traffic holdups at the Sirhaul and Kherki Daula toll plazas and the lack of basic amenities that cost people their lives.
Through its activism, HT succeeded in lifting the morale of people who had lost all hope for anything to change with the expressway. The people’s movement in Gurgaon against the toll plazas and other issues was reactivated.
“In recent times, HT’s campaign against the expressway problems and the toll plazas is an example for other media houses to emulate. HT’s campaign has empowered us and the extensive coverage that included inside stories like the CAG’s censure of the project has not just informed us but also recharged us to carry on our struggle,” said Attar Singh Sandhu, general secretary of Toll Hatao Sangharsh Samiti, a citizens’ pressure group fighting for the removal of toll.
The issues that were taken up ranged from traffic jams that amounted to lost opportunities and salary cuts for commuters to technical matters like inherent design faults.
HT also traversed the psychological space of the daily victims of the expressway. How the expressway and the toll plazas are not just a physical, but also psychological barriers; how they have led to deteriorating mental health of the people; how efficiencies have dropped and how because of the toll plazas several industrial houses decided to shift from Gurgaon.
Journalistic activism
On its half-a-hundred-long journey, HT tried to leave no stone unturned, no door un-knocked; HT shook up all the trees to thrash out a panacea for a city dying under the pressure of its own traffic. From the chief minister of Haryana to the Union ministry of road transport and highways, from the National Highways Authority of India (NHAI) to the negligent concessionaire DGSCL, HT barked at all the trees.
The problems were approached surgically for an acute and correct analysis; rather than pontification, people were involved to voice their concerns and responsibilities were fixed unfazed.
HT roped in experts from all walks of life to come up with an informed opinion rather than just conjecture and hollow reportage.
These people of intellect and experience not just showed the way to authentic information and analysis, but also came up with solutions and suggestions that shaped public opinion.
Impact
From otherwise-stolid local, state and national authorities, people started getting response. The joint commissioner of police (traffic) issued public notices to the agencies concerned; the NHAI sloughed off tardiness and took penal action against the concessionaire for having left the expressway to rot.
The agency even took matters in its own hands and ordered re-carpeting of service roads of the expressway, censuring DGSCL and charging the expenses on the company with a 15% surcharge.
A stretch of service road on the Delhi side was completed; the NHAI and the Haryana Urban Development Authority pooled in money for a foot-overbridge (FOB) at Hero Honda Chowk; the two agencies also finalised the construction of an FOB between Signature Tower and Iffco Chowk.
Looking forward
HT has now decided to expand its horizons. Yet again, on popular demand, HT wants to go hyper-local and look at the daily traffic mess that the internal traffic system of the city is in. This is an extension of our enterprise to make a difference to daily living in Gurgaon.
One of our experts Rohit Baluja, president of the Institute of Road Traffic Education, New Delhi, rightly pointed out, “Local authorities of Gurgaon found it easy to go with the development that was triggered with the expressway despite knowing that the national highway was not meant for local traffic and did not develop the internal road and traffic system properly.”
Source-http://www.hindustantimes.com/
DIMAPUR, (NPN)
Re-survey for rectification and pillaring along the proposed four-lane National Highway as per National Highway Authority of India (NHAI) alignment within Right of Way (RoW) from Kukidolong upto Piphema would begin from September 23.
In an order, DC Dimapur N. Hushili Sema requested all government departments: LRSO, EE PWD (R&B), EE Housing, EE NH, EE (Elect), DFO Dimapur, EE Irrigation & FC, district horticulture officer, EE soil & water conservation, land resource, fisheries, agri departments and others to assist the survey team wherever necessary till completion of the re-survey works. DC also requested all GBs/chairmen of village councils between Kukidolong and Piphema to inform landowners to extend cooperation to the survey team for smooth conduct of re-survey and re-alignment of the four-lane NH till its completion.
Source-http://www.nagalandpost.com
UMER MAQBOOL
As NHAI Charges ‘Exorbitant Fee’, Police Fears ‘Backlash’, Apprises Government
Srinagar, : A ‘confidential report’ by the Jammu and Kashmir Police has warned of “serious law and order implications in J&K” over levying of “exorbitant” road user fee by the National Highway Authority of India (NHAI) on Pathankote-Jammu highway.
The warning comes after the NHAI started charging toll at Rajbagh in Kathua district of Jammu province. Pertinently, the travel on Srinagar-Jammu highway would be expensive in next few years given the fact that the public and well as private transport plying on the route would also be tolled.
The documents accessed by Greater Kashmir reveal that JK Police Vide U.O. NO: Conf -2278- 80 dated 25-03-2013 has conveyed to the State government that charging of exorbitant fee at Seiswan Morh Rajbagh would have serious ramifications.
“The issue has serious law and order bearing and needs to be sorted out with the concerned at the earliest so that the anticipated repercussions (are) averted (Sic),” the communication reads.
The annexure vide No. PA/ conf / 1376-78 dated 23-03-2013 along with the communiqué above forewarns of serious law and order problems in the wake of installation of new Toll Plaza by NHAI in the Kathua district.
Pertinently, the toll post started collecting user fee from March 21 this year. But the process was suspended a day after following widespread resentment among the locals against “unjust charges”.
“There may be a general public outcry whenever the toll starts being levied again leading to serious law and order problems,” the police report reads, adding that “any strike by transporters is likely to have serious law and order repercussions given the bulk of population utilizing these services.”
It also states that political parties might try to “polarize state on regional lines over the issue.”
“Besides, some political parties may try to exploit the situation on regional lines (Jammu Vs Kashmir). A strike by the transporters with broad empathy and support of some political parties might manifest as a prolonged blocking of the Highway which in all probability will lead to ripple effects elsewhere,” the police report reads. “For example, a prolonged blocking of use of National Highway may lead to disturbances in the Kashmir Valley.”
The police warning, shot by senior officers, comes at a time when the state government is believed to be under tremendous pressure from the Centre to facilitate imposition of toll on the highway.
The police report further communicates that mini-bus and truckers also opposed the collection of toll given the steep charges. “A bus for example has to pay Rs 345 for a single crossing in either directions or Rs 7700 per month. Such charges are perceived as exorbitant and are likely to invite backlash if implemented,” it reads.
Moreover, the communiqué says that “reports indicates that the toll charges for Light Motor Vehicles (LMVs) at Rs 70 are perceived to be exorbitant.”
The report also says that definition of local vehicles which would be charged Rs 200 per month as per NHAI is vague.
Source-http://www.greaterkashmir.com
DC | 18th Sep 2013
Picture for representation only.
Kochi: The National Highway Authority of India (NHAI) has started maintenance and repair of the Edapally-Aroor NH bypass stretch after a series of confrontations with the district administration over the delay in taking up the work.
“We’ve filled the potholes in the busiest junction at Vytilla. The works were carried out at night so that the traffic wouldn’t be affected much. Now only a small portion leading to the Hub is left to be fixed”, said NHAI sources.
The work on filling the potholes is being done by individual contractors. “We’ll next fill the potholes at the Palarivattom junction as the craters are leading to heavy congestion and traffic snarls there”, the sources said.
Earlier, District Collector Sheikh Pareeth had said the district administration would carry out the work. The Collector came up with this decision after the NHAI authorities failed to carry out the repair work at the Edapally-Aroor stretch despite several warnings.
Meanwhile, the potholes just ahead of the signals at Palarivattom and Kundanoor have been causing long traffic blocks at both the junctions. “This chaotic traffic blocks often make motorists lose their cool”, said P.P.Shams, ACP, Traffic East.
Source-http://www.deccanchronicle.com
Written by ITW Editor · Filed Under NHAI
By PTI |
(Road Ministry’s proposal, to be taken up by the CCEA, suggests that companies can pay less premium in initial 2-3 years and the remaining amount in subsequent years.)
NEW DELHI: The government is likely to consider a proposal on Friday for restructuring of premium payment for companies building highway projects.At present, companies pay some amount of premium to the government in the first year of the project which keeps on increasing in the subsequent years.
According to sources, the Road Ministry’s proposal, which would be taken up by the Cabinet Committee on Economic Affairs, suggests that companies can pay less premium in initial 2-3 years and the remaining amount in subsequent years.
There will be no change in the value of the premium but companies can pay lesser amount initially, which is like a breather for the firms, sources said.
The Cabinet note for the proposal was circulated by the Ministry of Road Transport and Highways last month.
The move was proposed against the backdrop of some private infratstructure firms pulling out of road projects due to delays in regulatory clearances like land acquisition and environment clearances.
These problems had delayed the projects and affected the companies’ financials.
Earlier this year some private companies even terminated their contracts with the National Highways Authority of India ( NHAI) citing these reasons.
Therefore, in order to relieve the companies facing financial stress the Road Ministry proposed the idea of recasting the premium payment of the projects.
The ministry is also believed to have suggested that the restructured premium for any year should not be lower than the toll collected by the developer for that year and the developer cannot pull out from the project till all dues to the government are paid.
Source-http://economictimes.indiatimes.com
Written by ITW Editor · Filed Under CCEA, NHAI
(Menafn – Hindustan Times – McClatchy-Tribune Information Services via COMTEX)
The Comptroller and Auditor General (CAG) has raised doubts over the highways ministry’s proposed plan to allow restructuring of premium to be paid by private developers to bag the projects from National Highways Authority of India.
At present, 23 highway projects — awarded in the last 2-3 years — where developers had offered premium worth Rs. 99,000 crore over a 26-year-period are languishing as they are finding it difficult to pay owing to crunch of funds and lack of equity in the market. Some big ticket infrastructure majors including GMR and GVK, who had offered high premiums, have also threatened to pull out of the projects.
To avoid the risk of concessionaires walking out at a time when highway development has already hit a slump, the ministry had proposed to stagger the premium payment as a one time measure without impacting the net present value of the total premium to be paid over the entire contract period. The proposal is likely to come up in the cabinet shortly.
However, the CAG has observed that the proposal is not “consistent” with the concession agreement and can have implications for the bidding procedures used to determine the concessionaire.
India’s top auditor wants the highways ministry to look into the legality of the proposed plan before going ahead with it.
Even the finance ministry that had recently approved the road ministry’s rescheduling of premium proposal advised “extreme caution” because of an “element of moral hazard” in renegotiating concessions post award.
In view of the CAG’s observation, the ministry has recommended two options to the cabinet. The first is to allow rescheduling of premium as a one time measure after levying a penalty of up to 0.5% of the total project for renegotiating the norms of the contract between the developer and NHAI.
The second option is to terminate such contracts and re-bid the projects again. Officials, however, said that because of the ongoing slowdown, the re-bidding might not be able to attract high premiums like before and some of the projects might instead require viability gap funding from the government.
Source-http://www.menafn.com
V Kamalakara Rao, TNN |
VISAKHAPATNAM: The ongoing Samaikyandhra strike by the employee unions of AP State Road Transport Corporation (APSRTC) has made a dent in the revenues of the National Highways Authority of India (NHAI). With 2,849 APSRTC buses off the roads since the midnight of August 12 in the Vizianagaram zone alone, NHAI has lost out on toll charges of Rs 82.3 lakh from the state-owned transport corporation till August 26 in the four districts of Vizianagaram, Srikakulam, Visakhapatnam and East Godavari.
All the 27 depots falling under the Vizianagaram zone comprising Srikakulam, Vizianagaram, Visakhapatnam and East Godavari districts daily operate 2,849 buses, including 2,271 RTC-owned and 578 hired buses, to various parts of the state and other key destinations like Chennai and Bangalore. All these 27 depots pay Rs 6.3 lakh daily to NHAI towards toll gate charges.
APSRTC’s Vizianagaram zone pays Rs 1.9 crore monthly to NHAI towards the toll gate charges for their buses plying on national highways such as NH-26, 30, 40, 71 and even NH-16 from Chennai to Kolkata passing through parts of the north coastal districts. APSRTC’s Visakhapatnam region alone pays Rs 65 lakh per month to NHAI by way of toll charges, while East Godavari region pays Rs 71 lakh and Vizianagaram region (comprising depots of Vizianagaram and Srikakulam districts) pays Rs 54 lakh monthly.
For instance, an RTC bus from Visakhapatnam is supposed to cross 12 toll gates to reach Chennai, 11 toll gates for Bangalore, 10 toll gates for Hyderabad and five toll gates for Vijayawada. Similarly, an RTC bus from Visakhapatnam to Srikakulam is supposed to cross two toll gates and three toll gates for Palasa or Icchapuram.
Confirming the revenue loss, NHAI project director, VK Vijaya Sri, who takes care of 7 toll plazas on the 330-km stretch of NH-16 from Icchapuram in Srikakulam (Odisha and Andhra Pradesh border) to Tuni in Visakhapatnam district, said that NHAI had seen its revenues shrink over the last 13 days due to the RTC strike. “We are losing around 30-50% of our tollgate collections every day since the strike, largely due to the lack of APSRTC buses,” Vijaya Sri said.
Though NHAI garners revenue from the other transport vehicles like lorries, trucks and cars, APSRTC accounts for 50 to 60% of NHAI’s total monthly revenue through toll gate charges levied on various national highways in the state, said a senior NHAI official. “The RTC’s strike is having its impact on the Centre’s revenues through NHAI. If the stir continues like this for one month, NHAI will lose about Rs 25 crore across the state due to non-collection of toll charges from APSRTC,” the official said.
When contacted, APSRTC Vizianagaram zone executive director A Ramakrishna said that the zone was indirectly saving money by not paying toll gate charges to the NHAI because of the strike. The zone monthly pays about Rs 1.9 crore only towards tollgate charges. “Though we are able to save money due to non-payment of tollgate and fuel charges due to the strike, the zone is losing nearly Rs 2.8 to 3 crore on a daily basis due to all the buses not plying on the road. Overall, the zone has lost Rs 50 crore due to the protests and strike since July 31 following the Congress Working Committee’s announcement on July 30,” Ramakrishna told TOI.
Written by ITW Editor · Filed Under NHAI
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