Private sector shying away from NE road projects

March 7, 2008

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NEW DELHI, March 6 – The Centre may be ready with funds for developing the road sectors in the North-East, but projects have been hit with few takers from the private sector. The lack of response from the private sector has led a Parliamentary Panel to remark that it was disappointed to note that the government initiative did not yield much result in the development of road projects in the North Eastern States.President, Prathibha Devisingh Patil, while addressing the joint session of the Parliament had mentioned about infrastructure projects in the North-East. The SARDP- NE with a funding of Rs 43,000 crore has been formulated to construct, improve and widen roads in the region. However, the government’s offer so far has not yielded the desired results from the private players, slowing down implementation of the projects. The incentives announced by the government for participation of private sector in road sector of NER would invite good response and hopes that NES would get a better road connectivity, said the Parliamentary Standing Committee on Transport, Culture and Tourism.The Centre has a number of projects in the pipeline for the region including upgradation of 588 km of various National Highways (NHs) to two-lane under Phase A of Special Accelerated Road Development Programme for North-East (SARDP-NE) through private sector participation.The Centre had way back in 2005 cleared the construction of the projects on BOT basis. Thereafter, National Highway Authority of India (NHAI) invited bids for the most trafficked corridor from Jorabat to Barapani in Meghalaya. But there was no response from the bidders.Later, the Government sanctioned the projects on BOT (Annuity) basis. Further, NHDP:III B, which includes four lanning of 1051 km on NH in NER, has been cleared last year. Currently, detailed project report is under preparation by NHAI, the Committee has been told.It was recommended that the Department undertake a proper scientific study and take the consequent measure to modify the rules and procedures, if necessary, for participation of the private sector in road projects in North-East. Meanwhile, the Ministry has proposed quality audit for SARDP-NE, with possible involvement of IITs. The monitoring of quality of works would be considered through individual experts to be engaged through National Road Congress. Further, reputed institutes such as IITs would be involved for conducting tests and materials and works being executed by the contractor.