Had the National Highways Authority of India (NHAI) strictly followed contractual obligations, it would have ended up blacklisting a majority of highway developers.
This is what the NHAI Chairman R.P. Singh stated, as the Government continues to evaluate options to kick-start some road projects.
As of now, road developers are waiting for the recommendations of a committee headed by C. Rangarajan, Chairman, Prime Minister’s Economic Advisory Council, on the contours of allowing postponement of premium payment for highway projects.
“NHAI could have acted as any other counterparty and strict application of contractual provisions would have resulted in termination of projects and blacklisting of developers,” Singh stated in a letter to the Road Ministry.
Obligations not met Even though the Chairman is aware that in many of these contracts the Government itself has not met its obligations, he said, “Instead of an en masse blacklisting by NHAI, which would have found a vast majority of road sector developers in the doghouse and a few left, to execute road projects the NHAI found it more expedient and practical to work out a solution, which will be in the interest of the sector as a whole and hence the proposal for rescheduling of premium.”
Renegotiation The NHAI chief’s point appears to have been made in the backdrop of the reluctance on the part of many Government officials across Ministries, including the Department of Economic Affairs and Planning Commission, to allow renegotiation in projects already awarded.
Singh also reiterated his earlier stance of cancelling highway projects amicably and awarding the projects afresh.
At a time when delays in decision-making towards project implementation are being criticised, Singh has tried to reflect on decision-making delays on the policy front.
“It will not be out of place to point out that the problems in the road sector were not insurmountable, and the sector could have been easily revived if only decisions had come fast.”
Maintenance work Forget development of awarded road stretches, at least permit NHAI to carryout maintenance work so that roads do not turn shoddy, Singh pointed out.
According to the policy, NHAI is not supposed to carry out maintenance work on stretches awarded on BOT basis.
Many road stretches, which were awarded two years ago and where construction has not yet started, are languishing for want of maintenance work.