Rough ride for NHAI empowerment

NEW DELHI: The Prime Minister’s long-standing proposal of restructuring of National Highway Authority of India (NHAI) now has another lap to conquer. Cabinet secretary B K Chaturvedi has referred the contentious proposal to the committee of secretaries (CoS), which will finalise the modalities for revamp of NHAI.

The government has raised objections against dilution of authority of Public Investment Board (PIB). The Planning Commission has proposed to empower NHAI to take independent decisions for fast-track execution of the highway projects without having to forward such decisions to the PIB. The need arises from the fact that the ongoing NHDP is slated to go on till 2012, which would lead to an increase in the volume of work.

“Next week, the CoS will take stock of the suggestions given by the Planning Commission for restructuring of the NHAI. To work effectively, an empowered and independent NHAI has been envisaged. The revamped NHAI would be able to complete more work and take various decisions without depending on PIB,” senior government sources told ET.

The CoS will also mull over the PricewaterhouseCoopers’ suggestion to give more teeth to NHAI’s project appraisal wing. This would ensure speedy appraisal of projects and final takeoff of the NHDP projects. According to sources, a project appraisal expert would also be selected from among the contenders for the post selected by the transport ministry and NHAI.

Prime Minister Manmohan Singh had called for the restructuring of NHAI in January 2005, but the Centre has been dragging its feet on the proposal.