Kamal Nath, the new minister for road transport & highways, has one of the most challenging tasks in the new government. The road sector, which is at the core of the infrastructure networks needed for boosting overall growth of the economy, has fallen into a rut with the ministry unable to push through even simple procedures like handing out work contracts. So, though the annual upgradation of national highway projects has gone up from 2,610 km in 2005-06 to 3,580 km in 2007-08, the pace of adding new projects has decelerated sharply. For instance, while the Planning Commission notes that projects covering 7,996 km were under implementation in August 2007, the number has come down to 6,283 by end February 2009. This will seriously challenge the government?s ability to complete Phase-III and Phase-V of the NHDP.
Of the 12,109 km of highways to be built under the Phase-III by 2013, the length completed so far is only 659 km while another 1,816 km are under implementation. But contracts for almost three-fourths of the length stretching over 9,624 km are yet to be awarded. Similarly, in the case of NHDP Phase-V, under which 6,500 km of road is to be completed by December 12, work is yet to be awarded on 5,470 km. The new minister will need all the verve and the skills he has displayed in his previous role as minister for commerce & industry to pull the road programme back on track.
Quicker implementation will help kickstart the economy and boost the prospects of this important sector that has already attracted $1.64 billion in the first six months of the year (including in construction). On of the top of the priorities of the minister should be the quick implementation of the restructuring of the NHAI to make it a multi-disciplinary professional body with high quality financial and contract management expertise. The proposals, which have been already approved by the government earlier this year, include provisions for a search committee to appoint the chairman with a tenure of at least three years and appointment of six full-time members. But these changes have to get Parliament?s approval and need to be pushed through at the earliest.
?p.raghavan@expressindia.com
