Informed sources said the estimated cost for the project had gone up by almost 30 per cent to Rs 2,20,000 crore (Rs 2200 billion) against the earlier estimates of Rs 1,69,500 crore (Rs 1695 billion).
Escalation in costs mainly on account of delays has become a major cause for worry besides the inability of the authority to evolve a final model for constructing roads of this magnitude, they said.
The original cost of NHDP-I was estimated at Rs 7,000 crore (Rs 70 billion) as on January 13, 2005, but was enhanced to Rs 8,811 crore (Rs 88.11 billion) following revised estimates on January, 1, 2006, thereby marking an increase of 26 per cent.
Similarly, for NHDP-II, the original estimate was pegged at Rs 35,000 crore (Rs 350 billion) which spiralled to Rs 43,632 crore (Rs 436.32 billion), an increase of 25 per cent.
Elaborating on the reasons for delays and cost escalation, the sources indicated that this was mainly on account of absence of a fixed model.
The government is yet to fix a model-BOT (Built-Operate- Transfer) basis or annuity model for the much-hyped programme.
Infact, NHDP has also failed to attract international builders, for the much-hyped programme, which was expected to attract modern technology and machinery into the country.
But nothing has happened. Albeit, a few Malaysian contractors did evince interest in participating in NHDP but they too returned back an unhappy lot, sources said.
