
The minister has called a meeting of major road developers on Wednesday to discuss the problems faced by them — procedural, financial or those related to bidding. Nath is expected to meet all major infrastructure players such as GMR, GVK, Gammon India, Reliance Infrastructure, Soma, Simplex, Madhucon and Hindustan Construction Company.
“We have been invited by Nath to discuss the problems that we are facing. We plan to bring to the table the problems of shortage of credit and undue interference from the National Highways Authority of India (NHAI), and land acquisition-related issues,” the head of a major infrastructure company told The Indian Express. This was a positive step given that the previous minister refrained from such interactions, he added. The meeting will be attended by the NHAI chairman Brijeshwar Singh, roads secretary and other officials of the road transport and highways ministry. “Over 50 developers have been called for this all-comprehensive meeting,” a source said.
According to top government officials, the minister may go ahead with major changes in policy and procedures to remove glitches in the system. He also plans to enhance inter-state co-operation to speed up land acquisition for national highways, which has been one of the major causes of delays.
This apart, the minister may also clarify procedures and guidelines. In a recent report by Morgan Stanley, the investment bank had said that frequent changes in the bidding parameters had created uncertainty in the minds of developers. As a result, a large number of projects bid out in December 2008 received single bids, thus making the selection difficult.
The government could award less than ten projects against a target of 60 in 2008-09. Highway development hit a hurdle after developers went to court over the short-listing procedure specified by the Planning Commission, alleging that it favoured the big fish.
THE ROAD LESS TRAVELLED
Nath has called a meeting of major road developers to discuss the problems faced by them — procedural, financial or those related to bidding
Over 50 developers have been called for this meeting
They include GMR, GVK, Gammon India, Reliance Infrastructure, Soma, Simplex, Madhucon and Hindustan Construction Company