Highways hit roadblocks in 2012
Against the target of awarding 8,800 km highways during 2012-13, contracts for only 1,100 km could be given by the government in the first three quarters of the fiscal. These contracts were to be awarded on build, operate and transfer (BOT) mechanism but the overall economic slowdown and banks reluctance to fund projects took toll on the sector.
Difficulties in land acquisition and delays in environmental clearances added to the problems.
Even intervention of the Prime Minister's office could not lead to tangible results. The issue of banks' unwillingness to finance projects is pending at the level of PMO, which asked the Ministry to address the matter to the PMEAC so that it can be resolved.
A number of private companies in the road sector during the year had raised the issue of a conservative and rigid approach by banks in providing loans to the highways projects with the Transport Ministry.
However, as per Road Transport and Highways Minister C P Joshi the sector continues to retain the positive outlook, of achieving the milestones set, for the coming year amid abundant challenges.
Discussing the 'roadmap' for the sector Joshi admitted that "response (to projects) is not as positive as we expected. The bids which were supposed to materialise could not," but exuded confidence that with the Cabinet approving EPC
Be the first to comment.