NHDP projects fall short of target again

NEW DELHI: The North-South and East-West corridor projects of the National Highways Development Programme (NHDP) have fallen short of target yet again.

Out of a targeted award of 1,758 km in 2006-07, the government has been able to award just 48% or 845 km. The Prime Minister’s Committee on Infrastructure (CoI) has asked NHAI to review delay and the resulting cost over-runs.

“The North-South and East West corridor project, or phase II of NHDP, is facing serious cost and time over-runs due to delay in land acquisition,” a government official said. NHAI has not been able to match award targets since bulk of the land is yet to be acquired.

NHDP-II is scheduled for completion by 2009. CoI had asked NHAI to undertake a review of costs of the project earlier this year. Though the ministry of shipping, road transport and highways was supposed to have completed the cost review by March, NHAI is yet to finalise the terms of reference before it appoints experts for the same.

“Average cost of construction of the project, worked out at about Rs 5.85 crore per km, was found to be too high,” the official said. The Planning Commission had raised concerns over the high cost of construction and recommended cutting costs.

NHDP-III A, too, has showed a dismal performance in the 2006-07 fiscal. While the target for award was 1,603 km, the achievement has been just 314 km, or 20% of the target. Out of a targeted expenditure of Rs 10,195 crore for phases II, III and V in 2006-07, the achievement has been moderate, with 66% or Rs 7,074 crore spent in the fiscal.

Under the direction of the Prime Minister, the ministry of road transport and highways is expediting implementation of highway projects estimated at Rs 2,20,000 crore by 2012. The government has set a target of awarding 175 contracts covering a length of 15,803 km on buildoperate-transfer (BOT) basis by March 2008.