EPC mode is preferred over PPP mode for awarding highway projects
The government on Monday said that it has shifted its focus to the EPC (Engineering, Procurement and Construction) route for road building. This happened at the backdrop of the developers not showing interest in the PPP (Public Private Partnership) mode. There were 21 projects bid under PPP and they did not receive favourable responses from the developers.
At present, 180 road projects under the PPP mode valued at Rs 1.9 lakh crore are under construction through various agencies. These twenty-one projects were bid out by the National Highways Authority of India (NHAI) through the PPP route. Minister of State for road transport and highways Krishanpal Gurjar told the Rajya Sabha in a written reply that since they failed to award the projects through the PPP mode, now they are looking at the EPC mode.
Gurjar also mentioned that due to the lack of equity in the market, there has been a lukewarm response from the builders for the projects under PPP mode during 2012-13 and 2013-14. He added that during 2013-14, the NHAI had awarded 17 projects for a total length of 1,435.84 km, of which two projects are on PPP mode.
The highway sector is under a lot of pressure and considering the current market conditions, particularly with reference to the highway sector, the focus of the government is on implementation of highways through public funded EPC mode.
Source- The Financial Express
Engineering, EPC, Krishanpal Gurjar, National Highways Authority of India, NHAI, PPP, PPP mode, procurement and construction, Public-private partnership
