No takers for PPP, govt switches to EPC route for road building

Written by fe Bureau | New Delhi | Updated: Aug 5 2014, 05:55am hrs
With developers not showing interest in the PPP mode, the government on Monday said it has shifted its focus to the EPC route for road building. Almost 21 projects bid under PPP could elicit any response, the government said.

At present, 180 road projects under PPP mode valued at R1.9 lakh crore are under construction through various agencies. "Twenty-one projects were bid out by the National Highways Authority of India through PPP route, but none of them has received any response," MoS for road transport and highways Krishanpal Gurjar told the Rajya Sabha in a written reply. "Due to lack of equity in the market, there has been a lukewarm response from builders for the projects under PPP mode during 2012-13 and 2013-14," he said.

During 2013-14, the NHAI

had awarded 17 projects for

a total length of 1,435.84 km, of which two projects are on PPP mode, he added.

Considering the current market conditions, particularly with reference to the highway sector, the focus

of the government is on implementation of highways through public funded

engineering, procurement and construction (EPC) mode, he said.

He said that once the highways sector gathers momentum through execution of EPC projects and the issues plaguing the PPP mode are addressed, the focus on the mode, including build, operate and transfer (BOT), would be restored.