The issue was raised by some finance ministry officials during a recent meeting of the high-powered committee on roads. However, according to sources, the ministry of surface transport is unlikely to accept the demand.During the meeting, the finance ministry officials raised the issue on the ground that the two bidders, Larsen & Toubro and Reliance Infrastructure Ltd, had been shortlisted two years ago and therefore it was important to know whether the bids are still legally valid. The bidders for the project were shortlisted in September 1997.

The high-powered committee meeting was convened to finalise the concessiondocument for the Jaipur-Kishangarh project on the National Highway Number 8. The document would act as a model for all build-operate and transfer (BOT) projects.

But with the committee not reaching a consensus on a number of clauses, big road projects worth Rs 1,500 crore and 10 to 12 smaller projects worth Rs 500 crore, which had been awaiting finalisation of the document, would be delayed. Minutes of the latest meeting are likely to be put up for another meeting of the concerned ministries. The model document would see light of the day only if objections are not raised. Meanwhile there has been around 20 per cent rise in construction costs of various projects on account of inflation.

Among the various objections raised by finance ministry officials was the question of what should be considered as the project cost in case the government has to compensate the BOT operator. The officials did not agree to the suggestion that the total cost for the project should be raised from Rs 500 crore to Rs 633 croresince the project was revised from four lane to six lane.

"The finance ministry officials insisted that the cost should not change even if the project has been revised for six-laning. This will be totally unacceptable to the private operators," claimed the source.

The finance ministry officials also wanted that the BOT operator should pay an up-front grant of Rs 50 crore in case the project is healthy. "Why should anybody invest Rs 500 crore in a project and then also pay Rs 50 crore. It is too high for private operators to be interested," said the source.

The committee, however, decided to drop the concession fee clause. This would bring down the total cost considerably. Originally, private operators were expected to pay a concession fee from sixth year onwards. The fee was equivalent to 5000 passenger car units (PCUs) which was to increase at the rate of 1000 PCUs per year.

The committee decided to raise the construction period for the project to 30 months from 24 months. It also included thetripartite agreement with the Rajasthan government into the model document. Under the agreement, the state government would compensate the BOT operator in case the latter is not able to collect toll due to law and order reasons.

The 93-km Jaipur-Kishangarh stretch falls on the Golden Quadrangle linking Delhi, Calcutta, Chennai and Mumbai.

Blame it on North Block

Two years and two months of debating the model road concession agreement for BOT projects has not fructified. Officials in the ministry of surface transport say it is courtesy finance ministry.

The Cabinet constituted a high-powered committee for ironing out differences relating to the document and concerning ministries of law and finance besides surface transport. It is chaired by secretary, ministry of surface transport, and comprises NHAI chairman, finance secretary, expenditure secretary and law secretary. The committee has met several times but sources point out that only once secretary (expenditure) attended the meeting.

"Juniorofficials are sent from the finance ministry and for every other point they want to go back to the concerned secretaries for their approval," said an official. According to sources, the latest meeting, held on Monday, was attended by a director and an under secretary instead of secretary finance and a joint secretary instead of secretary, expenditure. Besides, an additional secretary represented the law secretary.

Peeved with the attitude of the finance ministry, officials in the surface transport ministry question the seriousness of the efforts being made for development of the road network.