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Thursday, May 20, 1999

NHAI likely to get more teeth 

Jyoti Mukul  
NEW DELHI, May 19: The ministry of surface transport is considering strengthening of the National Highways Authority of India (NHAI) by vesting it with more powers. It has constituted a committee, headed by an additional secretary, to study the issue.

The ministry is also considering a proposal to induct non-government management experts and representatives from financial institutions in NHAI.

Speaking to The Financial Express, secretary, ministry of surface transport, R Vasudevan said, "The purpose is to make available independent and expert advice for development of highways." This would not require any amendment in the National Highways Authority of India Act, 1988.

The committee has members from the Planning Commission and the ministry of finance besides representatives from the roads wings of the ministry of surface transport and NHAI.

The committee would also examine the role and size of roads wing and the director general (roads) whose function would shrink over a period of time. Itwould also need to decide the fate of the regional offices which function under the roads wing.

"The idea of creating NHAI was to cut short the route of executing projects through the state public works department. We want to speed up the decision-making process and not subject the road projects to the usual government procedures," said Vasudevan.

The current practice is that the ministry of surface transport releases funds from budgetary allocation to NHAI for executing projects.

The committee would also study what would be the status of the officers of the roads wing who go on deputation to NHAI for a particular time period. "In order to have a dedicated cadre for NHAI, the committee would also look into the issue of merging the roads wing with it," said Vasudevan.

According to the secretary, the fate of officers going to NHAI on deputation is undecided but once they go there on absorption basis, they would have to make a decision whether they would like to continue with the ministry or joinNHAI.

NHAI was constituted chiefly for time and cost-bound implementation of externally-funded road programmes. Later with the opening up of the road sector to private privatisation, NHAI was given the charge of BOT projects.The projects for widening of East-West and North-South corridor and the Golden Quadrilateral are also under NHAI fold.

NHAI is empowered to provide capital grants up to 40 per cent of the project cost to enhance project viability. It can also participate in equity up to 30 per cent of the total and provide bridge loans for a project.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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