National highways body loses Rs 874 cr on project delays: CAG

T. E. Raja Simhan Updated - April 30, 2013 at 10:05 PM.

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Delay in completion of port road connectivity (PRC) projects and loss of toll revenue had resulted in a loss of around Rs 873.85 crore to the National Highways Authority of India (NHAI), said the Comptroller and Auditor General of India.

The CAG observed this while reviewing the operations of special purpose vehicles (SPV) formed for implementation of PRC projects that connect major ports.

The Cabinet Committee on Economic Affairs, while granting approval in December 2000 to provide four lane connectivity to the major ports in the country on build, own and transfer basis through SPVs, had directed the NHAI, which develops, maintains and manages the National Highways, to award for PRC project by March 2002.

Accordingly, these projects were expected to be completed in 2-3 years of award of contract.

The NHAI/SPVs, however, did not prepare corporate/strategic plan for timely implementation of these projects.

The CAG in its report observed that there was a delay in formation of SPVs and award of contracts in various projects. None of the projects was completed by the scheduled completion date.

Out of the nine projects, only four were completed so far with delays ranging from 12 months (Jawaharlal Nehru Port Trust phase I) to 53 months (Kochi).

The remaining five projects were yet to be completed (as on December 2011).

At Mormugao and Kochi ports, a road stretch of 1.8 km and 10 km respectively at the port end could not be upgraded due to non-incorporation of these stretches in respective detailed project reports that was published in the 2012-13 annual report of the Ministry of Road Transport said.

The upgraded road connectivity to both roads could not be established.

toll losses

Due to the ineffective toll collection operations by the SPVs, toll collection was either delayed or suspended and SPVs sustained revenue loss of Rs 127.68 crore.

The potential loss of toll revenue, due to delay in completion of PRC projects worked out to Rs 873 crore (December 2011), the report said.

raja.simhan@thehindu.co.in

Published on April 30, 2013 16:20