market conditions support.
Meanwhile, NHAI’s attempts to convince the government to allow them to award projects on EPC, as they are not able to get bidders for projects on PPP, was shot down. “Award of projects on EPC would have given the cash-starved roads sector a fund booster to carry themselves forward. Any EPC project requires only 20 per cent of the total project cost in the first year and we have the money to fund it,” said the NHAI official.
He further explained that NHAI has around Rs 6,290 crore in its kitty and the money can be used to fund 3,000 km of road projects in the first year. “Cost of building 1 km of a four-lane road is around Rs 10.5 crore. We can easily fund around 3,000 km of four-lane road projects in the first year from the funds in our kitty,” the official added.
* The highways authority has so far been able to award 475 km of road projects, which were awarded in April
* This is the second consecutive year of dismal award of road projects after 2012-13, when awards touched a low of 800 km
* NHAI balmes the slow pace of award essentially to the slowdown in the economy