7957 Kms of New Road Projects Awarded in 2011-12, 54% Better Achievement Than Last Year
Giant Leap in Awarding Projects in PPP Mode Under NHDP & VGF Schemes by State Agencies
Net Present Value of Total Premium Offered NHAI Projects is Rs 30,400 Crores
NHAI Completely Switches to E-Tendering
The Union Minister for Road Transport & Highways Dr. C.P. Joshi has said that in the financial year 2011-12, his Ministry has made spectacular strides in awarding projects under NHDP and VGF scheme of the Ministry of Finance, by the NHAI and by the Ministry through state agencies. Addressing at a Press Conference here today, he said that we had awarded by then 7400 km in 58 projects and the bids for 8 more projects of 982 km had been received and was under process of award. Out of the bids under process, 4 more projects for 557 km were awarded during the last year. He informed that we have been able to award in all 7957 km in FY 2011-12 in 62 projects. This comprises of 6491 km by NHAI (49 projects) and 1466 km (13 projects) by Ministry through state agencies. This achievement is about 54% better than the best ever which was in the preceding year 2010-11 in which 5058 km were awarded by NHAI and 108 km by the Ministry through state agencies, totaling 5166 km.
He said that a very significant aspect of the success story of FY 2011-12 has been the state agencies (PWDs and State Road Development Corporations) making a giant leap in awarding projects under public private partnership (PPP) under NHDP and Ministry of Finance’s VGF scheme. From zero to 1466 km in two years is a remarkable achievement. The capacity building of the states in this field augurs well for the road sector.
The Minister said that the bids have been competitive and much more attractive than expected. Out of 49 bids awarded in NHAI 32 fetched premium. The total premium offered was about Rs 3000 crores. In the Ministry out of 13 projects awarded 5 fetched premium of a total of Rs 38 crores. Since the premium is payable yearly increasing by 5% every year, the Net Present Value (NPV) of the total premium offered is about Rs 30,400 crores.
Dr. Joshi said that the total project cost of the 62 projects awarded in FY 2011-12 is about Rs 68000 crores, which is the highest ever and substantially higher than the best ever. This is going to give tremendous boost to the economic growth of the country in the coming years. He informed that the Ministry want to accelerate this achievement further in 2012-13. Finance Minister had announced a target of 8800 km in his budget speech for 2012-13. We are very confident of achieving it. We already have about 1500 km whose bids are either under evaluation or due in April, May 2012. We have enough projects with feasibility reports to work on, he added.
The Minister acknowledged the constant support from the Prime Minister, Finance Minister and the Deputy Chairman, Planning Commission in overcoming various procedural difficulties which has made this achievement possible. This shows the commitment of this government to infrastructure which is the main driver of the economic growth of the country.
He said that for ensuring smooth flow of traffic through the toll gates implementation of electronic toll collection has been an important initiative. He informed that the first pilot project involving three concessionaires in Delhi-Chandigarh stretch is ready for commercial operation. In 2012-13 we plan to expand it in several parts of the country.
The Minister said that a major contributory factor in the tremendous growth has been transparency and objectivity in the tendering process. NHAI has completely switched to e-tendering. All the concession documents, the CVs of the supervision consultants, engineers have been placed on the web site. Very few organisations parallel this level of transparency. He insisted that state agencies too shift to e-tendering forthwith.