Highway developers file court cases against NHAI
Highway developers have filed for claims amounting to over Rs 20,000 crore to road projects before various courts and arbitration tribunals across the country. We cannot blame the Highway Builders as they were at the receiving end due to the shoddy red-tapism of the government.
According to the National Highway Builders Federation (NHBF), these claims relate to the additional cost incurred by the highway builders. This additional cost was incurred due to the delay in land acquisitions, shifting of utilities, cost escalation due to delay in the completion of projects and additional expenses owing to change in the scope of the projects.
M. Murali the director general of NHBF stated that the highway developers have to incur additional expenditure on account of change in the scope of the project mid-way. The government should finalise on the plans before awarding the projects and if additional changes are to be made, then the additional cost structure also needs to be finalised.
Mostly this happens due to the diversion of project sites or else due to the construction of some additional subways or over bridges, which were not part of the original plan outlay. Murali also stated that there is also considerable amount of delay in project completion dates and commercial operation dates, which could sometimes even go beyond six months. This delays in collecting the toll on the highways etc. and the builders do not earn any revenue until the toll collection starts and lose out on precious time due to the government delays.
Source- The Asian Age
