Ministry to hold PSUs to account

“We will not take any more chances in the future and will thoroughly scrutinise the government agency’s past records before handing over projects to them. The Ministry has taken a very serious view of the delays in these projects and is actively considering cancellation of contracts. It is true that contract termination is a time-consuming process involving calling for fresh tenders, but at least that way there is hope of completion… PSUs will not be spared if they do not deliver on time,” said a senior official.

Among the PSUs in the red are IRCON International Ltd, which is to four-lane a 37-km stretch leading to the new Mangalore port in Karnataka and Ranchi-based MECON which is working on road connectivity to Tuticorin and Cochin ports. All the three projects are well behind target. However, both the PSUs are prestigious organisations and are pointing fingers at the client NHAI.

Senior officials from the IRCON claim the delay was because of the NHAI which failed to acquire land and remove utilities on time.

It is not port-connectivity projects alone that are in the line of fire. The Uttar Pradesh State Bridge Building Corporation (UPSBC) that is four-laning the high traffic density corridor along NH 24, a 35-km stretch in Uttar Pradesh, is behind schedule. Senior officials say this case is being seen as a contract that has “almost failed”. The project deadline is September 2007, but officials fear the UPSBC may not be able to complete the stretch by September 2008.