NHAI project award touches new low of 787 km in FY13

March 26, 2013

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Financial Express reported that the National Highways Authority of India has reached a new low in project awards, managing only 787 km in 2012 to 13 a level last seen in 2008 to 09 when the global economy witnessed its worst ever slowdown.

The global slowdown following the sub prime crisis in the United States had its effect on NHAI’s performance, which could award only 6 projects spanning 600 km.

The dismal performance during the current year in terms of project awards was preceded by high performance in 2011 to 12 when the NHAI and the highways ministry together had awarded a record 8,000 km of projects. Of that, around 6,000 km were awarded by NHAI and the rest by the road transport ministry.

Officials in NHAI said that their board is likely to take up the proposal for another 500 km of road projects in its meeting to be held on Tuesday. But it will be difficult for the highways authority to be able to complete the award of projects before the end of this fiscal.

Low award by NHAI will badly impact the government’s truncated target of awarding 5,000 km for road projects in the current year.

After a robust performance in 2011 to 12 the Budget set a target of 8,800 km of road projects for 2012 to 13 which was later increased to 9,500 km by Prime Minister Mr Manmohan Singh. Mid way the target was further revised downwards to 8,500 km and further down to 5,000 km which is unlikely to be achieved.

NHAI together with the road transport ministry will likely be able to award 2,300

Source: http://www.steelguru.com