Despite slump, NHAI sets higher targets

The National Highways Authority of India has reported a drop in its massive highway upgradation exercise in 2007. But that has not made it any less ambitious. NHAI has set the highest-ever highway completion targets for itself for 2008-09 and has unveiled the largest-ever expenditure plans for the same period. It plans to upgrade 3,597 km of NHs and spend over Rs 28,000 crore in this financial year.

The completion target of 3,597 km for 2008-09 is far above the previous years’ targets. In 2007-08, NHAI had targeted to upgrade 2,885 km, of which it managed only 1,614 km; it had a target of a mere 817 km in 2006-07 and 1,035 km in 2005-06. While it had targeted an expenditure of Rs 17,615 crore for 2007-08, it only managed to spend 15,639 crore during that period. This year’s highway expenses, however, are over Rs 10,000 crore above the last annual expense incurred on the highway project.

In keeping with the expenditure planned, NHAI also wants to award contracts for 10,000 km of highways in 2008-09, against the 7.084 km target last year. It eventually managed to award only 1,203 km in 2007-08.

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Incidentally, NHAI had recorded the lowest ever progress/ achievement rate under this Government in 2007-08, as reported by The Indian Express. It had posted a 56 per cent project completion rate across all phases of NHDP in 2007-08 in terms of completion of project — the lowest since UPA came to power.

There has been a decline in NHDP’s progress rate since 2004. While the project completion rate was 81 per cent in 2004-05; it was 78 per cent in 2006-07 and 73 per cent in 2005-06. It’s down to 56 per cent in 2007-08. The project award rate has slumped from 70 per cent in 2005-06 to as low as 17 per cent in 2007-08.