NHDP: contractors to be put on notice for delay

Under fire for massive delay in the implementation of the National Highways Development Programme Phase I...

Under fire for massive delay in the implementation of the National Highways Development Programme (NHDP) Phase I, the Ministry of Shipping, Road Transport & Highways has decided to put on notice all contractors on lingering projects of the North South East West (NSEW) Corridor Phase I by June 2008 and even terminate and re-award them if necessary. The step comes close on the heels of the National Highways Authority of India (NHAI) deciding that it would close all lingering projects on the heavily delayed Golden Quadrilateral (GQ) by June this year.

The ministry in a recent meeting had assured a Committee of Secretaries (CoS) and Parliamentary Standing Committee that the move was being made to ‘expedite the completion of the project’. Both had strongly taken up the issue of delays in project implementation.

There are 10 projects along the NSEW corridor that are seen as causing a shortfall in meeting targets. While there are three identified contracts considered as ‘non-performing’, another three measuring some 61 km have already been terminated. Yet another three contracts are marked as showing ‘slow progress’ by the ministry in its report to the CoS.

Story continues below this ad

A total of 94 km along NSEW and 156 km along Port connectivity and other projects had been marked in the red by the ministry. Along the GQ, 225 km were heavily delayed and its contractors would be put on notice by June 2008. A total of 42 projects under NHDP I were running behind schedule, the ministry told the Lok Sabha this week.

The ministry has said “action will be taken against those contractors who do not complete their work as per schedule and/or who continue the work in a tardy manner by terminating their contracts with NHAI and re-awarding the work on their risk and cost”.

“There are 9-10 pending works along NSEW. Though the cost involved is just above Rs 100 crore, some are likely to be terminated and re-awarded in case of further delays,” said a senior official from the ministry.

The CoS has also taken a strong view of the delay in awarding of contracts under the NHDP Phase II. Against a target of awarding 488.44 km length on projects up to November 2007, NHAI had only awarded 42.8 km. As against a target of awarding 811 km by March 2008, NHAI is likely to award not more than 130 km with mere 16 per cent achievement.

Story continues below this ad

The Rs 30,000-crore NHDP Phase I, which envisages four-laned national highways between Delhi-Kolkata-Chennai-Mumbai-Delhi (GQ) and corridors connecting the northern and southern and eastern and western sections (NSEW) of India with four-laned highways, was approved in December 2000. The 7,498 km long NHDP Phase I is complete up to 6,984 km while 530-km length is still under implementation.