Why Roads & Highways construction is slowing down
ROADS & HIGHWAYS

Why Roads & Highways construction is slowing down

I highlighted the lags during the 12th India Roads Conference held recently as part of 8th India Construction Festival, especially the speed at which we have been constructing roads, which has fallen during the April-September 2022 period to 19 km per day against over 22 km per day during the same period in the previous year.

Interestingly, the official from the National Highways Authority of India claimed that the spending on roads had been increasing all through the past eight years. I had my opportunity to point out what I have been lamenting in my commentary time and again: that we are spending too much of that money on land acquisition and less on project execution.

Even states are having a hard time in accelerating road projects even though the centre is quite keen to step this up. Construction equipment companies are seeing orders drying up and contractors are bidding lower to keep the order book fat and impressive. Further, where is the application of the QCBS system over L1? It seems this is only being applied to tenders of Rs 10 crore and under to consultancy contracts, etc.

This defeats a good idea completely. Appeals on arbitration orders have also been discouraged and this, too, is not being observed in its true spirit. So, the ideas have reached the right ears, they have also been translated into notifications for execution, but the executors are failing to implement them in true form and spirit.

For the land acquisition issue, the only way now left for the Government is to initiate a Land Lease Model Law for leasing farmland for national infrastructure projects. This can be brought in quickly and nearly 40 per cent of the amount spent on roads can be saved from investment into land acquisition and utilised to accelerate EPC contracts.

The MoRTH Secretary recently assured that he is confident of building 12,000 km this financial year, which will give us a construction rate of 33 km per day. The ministry had constructed 10,237 km in 2019-20, 13,327 km in 2020-21 and 10,457 km in 2021-22. So, constructing 12,000 kms would definitely be an improvement over 2021-22 which was a slow year but nowhere near the touted figure of 18,000 kms! Having slowed construction to just 4,559 km in the first six months of this financial year, the pace of construction would have to accelerate to 42 km per day in the next six months to meet the target of 12,000 kms or 75 km per day to meet the target of 18,000 kms. Is that possible considering that the government’s fiscal deficit is to be contained?

With financial constraints at hand, does the Government have the capability to accelerate its infusion as laid out in the National Infrastructure Pipeline? Indications are that the Government is now shying away from investment proposals and it is the private sector that is driving the economy.

Images Source: Herald Tribune



Author: Pratap Padode is the Editor-in-Chief of Construction World and President of FIRST Construction Council


Also read:
Even states are having a hard time in accelerating road projects
Centre is quite keen
The MoRTH Secretary recently assured that he is confident of building 12,000 kms this financial year




I highlighted the lags during the 12th India Roads Conference held recently as part of 8th India Construction Festival, especially the speed at which we have been constructing roads, which has fallen during the April-September 2022 period to 19 km per day against over 22 km per day during the same period in the previous year. Interestingly, the official from the National Highways Authority of India claimed that the spending on roads had been increasing all through the past eight years. I had my opportunity to point out what I have been lamenting in my commentary time and again: that we are spending too much of that money on land acquisition and less on project execution. Even states are having a hard time in accelerating road projects even though the centre is quite keen to step this up. Construction equipment companies are seeing orders drying up and contractors are bidding lower to keep the order book fat and impressive. Further, where is the application of the QCBS system over L1? It seems this is only being applied to tenders of Rs 10 crore and under to consultancy contracts, etc. This defeats a good idea completely. Appeals on arbitration orders have also been discouraged and this, too, is not being observed in its true spirit. So, the ideas have reached the right ears, they have also been translated into notifications for execution, but the executors are failing to implement them in true form and spirit. For the land acquisition issue, the only way now left for the Government is to initiate a Land Lease Model Law for leasing farmland for national infrastructure projects. This can be brought in quickly and nearly 40 per cent of the amount spent on roads can be saved from investment into land acquisition and utilised to accelerate EPC contracts. The MoRTH Secretary recently assured that he is confident of building 12,000 km this financial year, which will give us a construction rate of 33 km per day. The ministry had constructed 10,237 km in 2019-20, 13,327 km in 2020-21 and 10,457 km in 2021-22. So, constructing 12,000 kms would definitely be an improvement over 2021-22 which was a slow year but nowhere near the touted figure of 18,000 kms! Having slowed construction to just 4,559 km in the first six months of this financial year, the pace of construction would have to accelerate to 42 km per day in the next six months to meet the target of 12,000 kms or 75 km per day to meet the target of 18,000 kms. Is that possible considering that the government’s fiscal deficit is to be contained? With financial constraints at hand, does the Government have the capability to accelerate its infusion as laid out in the National Infrastructure Pipeline? Indications are that the Government is now shying away from investment proposals and it is the private sector that is driving the economy.Images Source: Herald TribuneAuthor: Pratap Padode is the Editor-in-Chief of Construction World and President of FIRST Construction Council Also read: Even states are having a hard time in accelerating road projectsCentre is quite keen The MoRTH Secretary recently assured that he is confident of building 12,000 kms this financial year

Next Story
Resources

Anant Raj Appoints Anish Sarin as Director

Anant Raj has appointed Anish Sarin as Director on its Board, marking a key step in the company’s leadership transition and long-term growth strategy. The announcement was made during the company’s Q4 and FY26 results declaration, reflecting the induction of next-generation leadership as the company expands across real estate, cloud infrastructure and data centre businesses. Anish Sarin, grandson of veteran industrialist Ashok Sarin, represents the emerging leadership at Anant Raj. Educated at Regent’s University London, he brings a global business outlook along with a strong focus on t..

Next Story
Technology

Vedanta eyes AI-led value growth

Vedanta Group expects to unlock USD 300–400 million in additional value over the next three years through large-scale deployment of AI-led industrial technologies across its businesses. The group said its V-Spark DeepTech Ventures platform has already delivered nearly four times return on investment since inception.Vedanta is scaling AI, predictive analytics, Industrial Internet of Things, digital twins, machine learning, automation and connected manufacturing technologies across its metals, mining, energy and industrial operations. These deployments are aimed at improving productivity, lowe..

Next Story
Infrastructure Urban

Hindustan Zinc inks pact with Group Nirmal

Hindustan Zinc has signed an MoU with Group Nirmal to set up a zinc wire manufacturing facility at its Zinc Industrial Park in Khankhala, Bhilwara district, Rajasthan. The partnership will expand downstream manufacturing activity and support value-added zinc applications in India.Under the agreement, Group Nirmal will manufacture zinc wire products using Hindustan Zinc’s Special High Grade zinc. The products will cater to infrastructure, renewable energy, automotive and industrial engineering sectors.Zinc wire is used in thermal spray coating and metallising processes to protect steel struct..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

-->