2,500-km road projects cancelled; fresh bids after cost revision
In the third year of the UPA-II regime a large part of the project to build 2,500 km of highways was awarded which has now been cancelled. In 2011-12 most of these projects were awarded by the National Highways Authority of India (NHAI). Because of the economic slowdown in the succeeding years 2012-13 and 2013-14 firms did not counter too many bids that were floated by the NHAI.
A list of projects which have been cancelled constitutes Jabalpur-Lakhanadon (originally bagged by Ganone Dunkerley), Vadodara-Surat including Narmada bridge (HCC), Lucknow-Sultanpur (Essar-Atlanta), Hospet-Bellary (PNC-Betul), Karnataka-Kerala border–Kannur (Transtroy), Angul-Sambalpur (Abhijeet), Jabalpur-Katni-Rewa (Soma Tollways) and Raipur-Bilaspur (IVRCL Assets).
An NHAI official informed, Some projects most of which were awarded in 2011-12 and are probably 23 in count have been cancelled, foreclosed or finished because of developers not paying performance guarantees or due to stoppage in land acquisition or environmental clearances. Two of the annulled projects have been re-awarded.
Appraisal committee
Only after an inter-Ministerial body, the public-private partnership appraisal committee reconsiders the costs upwards taking into story the inflation since the time the project was awarded, Fresh bids for such projects can be invited. NHAI and industry sources say the list of cancelled projects is likely to get longer.
This reason behind is that the many road developers who have not yet started working on projects allotted two three years before hitherto to take a clear attitude on whether they will carry on or give up the projects after examining the premium re-scheduling proposal. But the proposal does not have enough to turn these projects viable, which were approved recently.
The proposal granting premium rescheduling will largely help projects on which work has already started. Two projects are looking to postpone their premium payment which includes IRB Infrastructure (Ahmedabad-Vadodara, Chitradurga-Tumkur Bypass), three of Reliance Infrastructure (Pune-Satara, Hosur-Krishnagiri, Kandla-Mundra Port), one each of L&T IDPL (Gandhidham-Samakhiali), Essel Infrastructure (Walajahpet-Poonamallee) and SREI Infrastructure (Sholapur-Maharashtra-Karnataka border), alleged another source in the know.
Source: The Hindu Business Line
2500-km road project UPA-II regime, Ahmedabad-Vadodara, Angul-Sambalpur, Chitradurga-Tumkur Bypass, environmental clearances, Essar-Atlanta, Essel Infrastructure, Gandhidham-Samakhiali, Ganone Dunkerley, Highway, Hospet-Bellary, Hosur-Krishnagiri, Inter-Ministerial body, IRB Infrastructure, Jabalpur-Katni-Rewa, Jabalpur-Lakhanadon, Kandla-Mundra Port, Karnataka-Kerala border–Kannur, L&T IDPL, Lucknow-Sultanpur, Narmada bridge, National Highways Authority of India, NHAI, PNC-Betul, Public-private partnership, Pune-Satara, Raipur-Bilaspur, Reliance Infrastructure, road projects cancelled, Sholapur-Maharashtra-Karnataka border, SREI Infrastructure, UPA-II regime, Vadodara-Surat, Walajahpet-Poonamallee
