1. Highway construction target set to slip by a third; Nitin Gadkari’s ministry may finish just 10,000 km new roads

Highway construction target set to slip by a third; Nitin Gadkari’s ministry may finish just 10,000 km new roads

Whenever the minister of road transport and highways Nitin Gadkari was asked if his target to accelerate the road construction to 40 km/day for FY17 was too ambitious, he used to exude confidence and assert the target would be achieved.

By: | Updated: November 28, 2016 6:47 PM
The ministry sets monthly targets both for itself and for the NHAI. The combined target for the April-October period had been fixed at 11,208 km for awards and 6,036 km for constructions. (PTI) The ministry sets monthly targets both for itself and for the NHAI. The combined target for the April-October period had been fixed at 11,208 km for awards and 6,036 km for constructions. (PTI)

Whenever the minister of road transport and highways Nitin Gadkari was asked if his target to accelerate the road construction to 40 km/day for FY17 was too ambitious, he used to exude confidence and assert the target would be achieved. However, eight months into the year, official sources now admit things are far behind the schedule. At best, 10,000-km new highways, two-thirds of the target, could be built this year, they said, adding that new projects awards were unlikely to cross 15,000 km, against the targeted 25,000 km.

Apart from the continued torpor in private investments — BOT projects have barely kicked off and the hybrid annuity model that mitigates developers’ risk too has seen only moderate success — over-optimistic targets were also to blame for the slippage, analysts said. This year’s construction target is 2.5 times what was accomplished last year.

road

Till October-end, the road ministry, along with the National Highways Authority of India, could award projects to build 4,443-km highways and constructed only 3,591-km new ones. “Even as the present numbers look a bit disappointing, we are hopeful of constructing 10,000-km highways this fiscal considering the fact that construction generally picks up in the second half of the year while constant monitoring might help us award 15,000 km projects in the current fiscal,” a senior official said on condition of anonymity.

The ministry sets monthly targets both for itself and for the NHAI. The combined target for the April-October period had been fixed at 11,208 km for awards and 6,036 km for constructions. NHAI has fared worse than the ministry so far.

The authority has been asked to construct 8,000-km highways and award 15,000-km projects in the current fiscal. It was asked to award 8,750-km projects and construct 2,800 km highways during the April-October period against which it could manage only 2,330-km awards and 2,800-km construction. The ministry has constructed 2,357 km and awarded 2,032-km highways against the respective targets of 2,618 km and 2,032 km in the April-October period. India had constructed 6,063-km highways and awarded 10,098-km highway projects in the last fiscal.

  1. K
    Krish
    Nov 28, 2016 at 3:18 am
    Why doesn't Financial Express share annual Highway construction during 10 years of UPA rule, for comparison, instead of using anti-BJP approach
    Reply
    1. U
      Uddipta
      Nov 28, 2016 at 6:13 am
      10000 km highway construction is still a pretty good job compared to the UPA govt which never exceeded 6000 kms..But for India to sustain high growth rate,we need to build faster,Mr. Gadkari needs to pull up his socks and get the things done..
      Reply
      1. V
        Viswanathan NS
        Nov 28, 2016 at 4:14 am
        If they do, 14,600 KM it would be 40 KM per day and 3X of what previous govt was doing. Now at 10,000 KM it would be 27 KM per day... where is the issue.. if it was 25,000 KM then it would be 68 Km per day...
        Reply

        Go to Top