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This is an archive article published on November 9, 2006

NHDP: Decision on waiver of PPP panel nod today

The intention of the proposal is to avoid delays as the PPPAC would take one month to clear the projects

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The Cabinet Committee on Economic Affairs CCEA is expected to consider a proposal tomorrow that seeks to waive the now mandatory Public Private Partnership Appraisal Committee PPPAC approval route for 12 road projects that need an investment of Rs 4,300 crore.

Progress on these projects, that fall under phase II and phase III of the National Highway Development Programme NHDP, was made well before the PPPAC approval route for all public private partnership projects above Rs 200 crore was made mandatory by the Cabinet last year.

While bids for eight of the 12 projects have already been decided and awarded, bids for the remaining four have been decided but not awarded. The intention of the proposal is to avoid delays as the PPPAC would take a maximum of one month to clear the projects. Thereafter, most of these projects would still need Cabinet approval as each of the projects still costs over Rs 200 crore.

While the intention of PPPAC approval route is to have an inter-ministerial scrutiny of projects, a waiver of PPPAC approval would be using the six-month time given to the operators to achieve financial closure during which time changes cannot be made in their bid offers.

The move to approach the Cabinet to avoid further delays in national highway programmes comes at a time when today Road Transport Minister TR Baalu strongly defended the Government8217;s performance in the highway sector.

At the economic editors conference, he said it was the NDA government that could not complete the Golden Quadrilateral and that a substantial portion of the project was completed during this Government8217;s regime. He pointed out that over 50 per cent of the 6,669 km of NHDP I completed out of a total of 7,498 km was during the present Government8217;s tenure.

 

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