Gadkari denies cost overruns in Dwarka Expressway

15 Sep 2023 CW Team

Addressing concerns, Gadkari clarified that the project had not experienced any cost overrun or instances of corruption. He explained that the initial proposal submitted under the Bharatmala program lacked a detailed estimated construction cost and noted that the final costs, including ring roads and flyovers, would be determined after the detailed project report was ready. The Bharatmala program is a massive road, highway, and expressway initiative covering 83,677 kilometres of roads with a budget of Rs 10.63 lakh crore.

Gadkari emphasized that despite the project's complexity, which includes tunnels and bridges, the base construction cost has been maintained at around Rs 18.5 crore per kilometre. He attributed the discrepancy in cost calculations to the Comptroller and Auditor General (CAG), stating that the CAG compared the final cost with the initial estimates without accounting for ring roads and flyovers.

Furthermore, Gadkari highlighted the government's cost-saving efforts through the tendering process for the Dwarka Expressway, resulting in approximately 12% savings in construction costs compared to contract estimates.

The CAG's recent report on Phase-I of the Bharatmala Pariyojana had raised concerns about the elevated carriageway on the Haryana portion of the expressway, which led to an increased construction cost of Rs 251 crore per kilometre, compared to the originally approved Rs 18.2 crore per kilometre.

Gadkari asserted the government's commitment to transparency, timeliness, quality, and results in infrastructure projects. He emphasized the goal of elevating India's road infrastructure to match the quality of the United States by the end of 2024. Additionally, he expressed willingness to accept responsibility if any wrongdoing was proven.

Despite recent challenges, Gadkari expressed confidence in achieving project awarding and construction targets for 2023-24, aiming to construct approximately 13,800 kilometres of national highways during that period. He highlighted the growth in optimism surrounding India's roads and highways segment, with projects worth Rs 3.5 lakh crore awarded annually and a significant increase in the number of road contractors.

The government is also exploring the Build, Operate, and Transfer (BOT) model for highway projects, with plans to bid out approximately 10% of road awards through BOT in 2024-25. Gadkari stressed the importance of the BOT model in enhancing infrastructure quality, the economy, and employment opportunities.

In BOT projects, private investors finance, build, and operate highway projects over a concession period, recouping investments through user charges or tolls, contributing to efficient project execution and technology adoption.

If you want to learn more about Indian Roads, make sure you sign-up for the India Roads Conference at the India Construction Festival on October 12th in New Delhi

Click HERE and reserve your seats! Or call Deepali on 82919 95574....

Union Minister of Road Transport and Highways, Nitin Gadkari, has strongly refuted allegations of cost overruns and corruption in the construction of the Dwarka Expressway project. The 27.6-kilometer elevated grade-separated expressway, connecting Delhi's Dwarka to Gurugram's Kherki Daula Toll Plaza, is currently under construction and has been subject to scrutiny.Addressing concerns, Gadkari clarified that the project had not experienced any cost overrun or instances of corruption. He explained that the initial proposal submitted under the Bharatmala program lacked a detailed estimated construction cost and noted that the final costs, including ring roads and flyovers, would be determined after the detailed project report was ready. The Bharatmala program is a massive road, highway, and expressway initiative covering 83,677 kilometres of roads with a budget of Rs 10.63 lakh crore.Gadkari emphasized that despite the project's complexity, which includes tunnels and bridges, the base construction cost has been maintained at around Rs 18.5 crore per kilometre. He attributed the discrepancy in cost calculations to the Comptroller and Auditor General (CAG), stating that the CAG compared the final cost with the initial estimates without accounting for ring roads and flyovers.Furthermore, Gadkari highlighted the government's cost-saving efforts through the tendering process for the Dwarka Expressway, resulting in approximately 12% savings in construction costs compared to contract estimates.The CAG's recent report on Phase-I of the Bharatmala Pariyojana had raised concerns about the elevated carriageway on the Haryana portion of the expressway, which led to an increased construction cost of Rs 251 crore per kilometre, compared to the originally approved Rs 18.2 crore per kilometre.Gadkari asserted the government's commitment to transparency, timeliness, quality, and results in infrastructure projects. He emphasized the goal of elevating India's road infrastructure to match the quality of the United States by the end of 2024. Additionally, he expressed willingness to accept responsibility if any wrongdoing was proven.Despite recent challenges, Gadkari expressed confidence in achieving project awarding and construction targets for 2023-24, aiming to construct approximately 13,800 kilometres of national highways during that period. He highlighted the growth in optimism surrounding India's roads and highways segment, with projects worth Rs 3.5 lakh crore awarded annually and a significant increase in the number of road contractors.The government is also exploring the Build, Operate, and Transfer (BOT) model for highway projects, with plans to bid out approximately 10% of road awards through BOT in 2024-25. Gadkari stressed the importance of the BOT model in enhancing infrastructure quality, the economy, and employment opportunities.In BOT projects, private investors finance, build, and operate highway projects over a concession period, recouping investments through user charges or tolls, contributing to efficient project execution and technology adoption. If you want to learn more about Indian Roads, make sure you sign-up for the India Roads Conference at the India Construction Festival on October 12th in New Delhi Click HERE and reserve your seats! Or call Deepali on 82919 95574....

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