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This is an archive article published on December 19, 2008

Don’t change NHAI chief so often, HC tells Baalu

The Delhi High Court has slammed Ministry of Shipping, Road Transport and Highways, led by T R Baalu...

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The Delhi High Court has slammed Ministry of Shipping, Road Transport and Highways, led by T R Baalu, for changing the chairperson of National Highways Authority of India (NHAI) far too frequently — five in two-and-a-half years — and also interfering in its functioning. The NHAI is an autonomous public sector undertaking set up under an Act of Parliament in 1988.

In its December 16 judgment on a case filed by GMR Infrastructure and Madhucon Projects against the Government and NHAI, the High Court said that frequent changes of a public authority is against “the concept of an independent authority and makes any chairman vulnerable to pulls and pressures”.

Between July 2006 and now, the NHAI chief’s post has been akin to a game of musical chairs being passed to five IAS officers, each occupying the seat for time periods ranging from a mere two months to less than a year. The shortest tenure was that of J S Maini which lasted for two months — August-September 2007. N Gokulram, who succeeded him, had the longest tenure — 11 months.

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Additional Solicitor General Gopal Subramanium, representing the Government and the NHAI, said promotions of individual officers to a higher post led to the frequent changes. The court, however, said, “We are of the view that only those officers should be appointed to the post of chairman who are likely to act in that capacity for a substantial time… (frequent changes) create administrative chaos and prevent implementation of any long-term strategy.”

The NHAI has been set up by the Government with an ambitious, long-term objective of creating an overwhelming road infrastructure across the country. The NHAI has the mandate to execute highway development programmes in seven phases, totalling over 3,00,000 km entailing an expenditure estimated to be over Rs 15 lakh crore.

“We would suggest to the Law Commission and the Centre to examine the feasibility of incorporation of statutory provisions with regard to three to five years fixed tenure of chairman of public enterprises and further laying of all the directions issued by the ministries/ Central Government to the public enterprises before Parliament in a fixed time frame,” the court said.

The case was won by GMR and Madhucon, which had moved the High Court after being displaced from the final list of bidders for the Bellary Hospet road project undaer NHDP III by a two-member committee headed by the Road Transport and Highways Secretary. The committee had disqualified the two companies in favour of Shapoorji-Pallonji and Soma-Isolux, stating that the latter had more experience. Even though the Additional Solicitor General claimed that the Ministry did not interfere with the selection process, the NHAI stated in court that it had acted in line with directions given by the Ministry.

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