With a change in government at the Centre, the National Highways Authority of India (NHAI) is seeking powers to change the Model Concession Agreement (MCA) bidding documents that will be in sync with the requirements of projects to be awarded and other economic considerations. Currently, projects are awarded on the basis of an MCA, a standard document defining rules for award of road projects, and any change in the document requires approval from the inter-ministerial group and also the Union Cabinet in some cases. The proposals have been sent to the road transport ministry and is likely to be discussed in the meeting with Prime Minister Narendra Modi next week, as part of changes required for the revival of the road sector. NHAI has also sought cheap financing that would help keep project cost low. NHAI’s performance in terms of project awards has been dismal in the past two years and several projects awarded earlier remain stuck.
