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Rediff.com  » Business » Road projects: 5 states pulled up

Road projects: 5 states pulled up

By BS Economy Bureau in New Delhi
May 22, 2006 14:33 IST
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 The road transport and highways ministry has said Tamil Nadu, Karnataka, Maharashtra, Andhra Pradesh and Orissa have done little to acquire land for highway development projects in which thousands of crores have been invested by the Centre.

The main cause for delay in completion of highway projects and cost escalation is the time-consuming land acquisition process, says the ministry. It added that these five states are the most negligent in acquiring land for highway projects.

At a recent meeting of the chief secretaries on infrastructure, Secretary (road transport and highways) LK Joshi said there were some cases in which land was yet to be acquired for projects cleared under the Golden Quadrilateral about five years ago.

Cabinet Secretary BK Chaturvedi, who chaired the session, pulled up representatives from the states mentioned and asked them to send a detailed reply to the ministry explaining why the required land had not been acquired.

The National Highway Authority of India was severely criticised by the Planning Commission recently. According to the commission, cost escalation on the seven phases of the National Highway Development Programme has touched Rs 50,500 crore (Rs 505 billion).

This assessment was made after taking into account all seven phases of the programme, including the notional cost on phases four, five, six and seven, which were yet to be approved.

The commission has said, compared to January last year, the costs on the seven phases have escalated 30 per cent.

The NHAI has consistently maintained that the main cause for the spiralling costs was delay in land acquisition.

The problem has plagued the authority for many years and to improve coordination between the states and the highway body, the states had been asked to nominate nodal officers, who were to inform the department about developments in land acquisition.

However, some of the states are yet to appoint nodal officers, the NHAI has complained.

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BS Economy Bureau in New Delhi
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