11-13-2006, 11:46 PM
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Highways at standstill </b>
Pioneer.com
Yogesh Vajpeyi | New Delhi
...as authorities bicker over new contract
Disagreements over the new Model Concession Agreement, authored by a Planning Commission functionary, have virtually pushed the country's National Highway Development Programme (NHDP) to a dead end.
The impasse has forced the National Highway Authority of India (NHAI) not to award any new road project contract under private public participation (PPP) during this financial year so far.
And indications are that the authority, which had targeted awarding over 3,000 km highway projects under NHDP phases II and III this fiscal year, would not be able to do so in the next few months.
<b>The award of fresh highway contracts has been on hold since January 2005 to allow a new MCA to be instated in place of the existing MCA</b>.
But the NHAI and the Ministry of Road Transport and Highways (MORTH) have been opposing the new MCA, authored by IAS officer Gajendra Haldia, advisor to deputy chairman of Planning Commission Montek Singh Ahluwalia more than a year back, on the plea that it is impractical.
One of their principal objections is the new MCA stipulation that NHAI acquire and hand over 80 per cent of total land required for the project to the road developer within three months of awarding the project. In case NHAI is unable to do this, it has to compensate the road operator.
NHAI and MORTH say that since the State Governments handle land acquisition, NHAI should not be punished for their failure to do so within the time frame.
<b>According to the earlier MCA, the road developer was required to acquire land, while NHAI had to facilitate the process. "But now, NHAI has to acquire the land and even achieving 50-60 per cent land acquisition within the first three months is quite a task for the authority," </b>say NHAI officials.
<b>After over a year of procrastination, the Government is now considering a move to relax this requirement so that NHAI can hand over 50-60 per cent of total land required within first three months.</b>
But the MCA has now hit a new roadblock. State Governments have raised their concerns over the ambiguity in its competing road clause. The clause prohibits them to construct another competing road along the national highway for 10 years.
They have sought clarification about the MCA's definition of "competing roads" before committing their support because it makes the State agencies violating the clause liable to pay the concessionaire compensation equal to the difference between the realisable fee and the projected daily fee until the breach is rectified.
The State support agreement is a crucial element in the finalisation and acceptance of the MCA. It also ensures State's support in providing various clearances and assistance in terms of infrastructure facilities to the concessionaire. State support is also required for traffic diversion and police assistance during project implementation.
Despite over a year's haggling and cajoling, the new MCA has yet to clear many other roadblocks, highly placed sources in the Government fear.
The new toll policy, which was to be a part of the new MCA, has also not yet been firmed up. Private players, for instance, feel capping hikes in toll rates at just 40 per cent of the wholesale price index against 100 per cent earlier make it a lot less attractive.
Ironically, irrespective of these objections from various stakeholders, Planning Commission Deputy Chairman's advisor<b> Gajendra Haldia is pushing the new MCA relentlessly. Haldia, a 1973 batch Rajasthan cadre IAS officer, has also copyrighted the new MCA in his name.</b>
NHAI is understandably squeamish about the new MCA because it takes away a lot of discretionary powers from it. It reduces the day-to-day interaction between the builder and NHAI engineers and proposes a 'hands off' approach so that the NHAI is allowed to intervene only in the event of default.
"We will not be able to hold up approvals and money based on various construction linked specifications being unmet," says an official.
<b>Only time will tell whether the MCA will ultimately reduce delays, bring more efficiency and lower costs remains to be seen, as its promoters claim. But just now it has virtually derailed the NHDP.</b><!--QuoteEnd--><!--QuoteEEnd-->
Here comes another opportunity for new committee for Moron Singh.
Pioneer.com
Yogesh Vajpeyi | New Delhi
...as authorities bicker over new contract
Disagreements over the new Model Concession Agreement, authored by a Planning Commission functionary, have virtually pushed the country's National Highway Development Programme (NHDP) to a dead end.
The impasse has forced the National Highway Authority of India (NHAI) not to award any new road project contract under private public participation (PPP) during this financial year so far.
And indications are that the authority, which had targeted awarding over 3,000 km highway projects under NHDP phases II and III this fiscal year, would not be able to do so in the next few months.
<b>The award of fresh highway contracts has been on hold since January 2005 to allow a new MCA to be instated in place of the existing MCA</b>.
But the NHAI and the Ministry of Road Transport and Highways (MORTH) have been opposing the new MCA, authored by IAS officer Gajendra Haldia, advisor to deputy chairman of Planning Commission Montek Singh Ahluwalia more than a year back, on the plea that it is impractical.
One of their principal objections is the new MCA stipulation that NHAI acquire and hand over 80 per cent of total land required for the project to the road developer within three months of awarding the project. In case NHAI is unable to do this, it has to compensate the road operator.
NHAI and MORTH say that since the State Governments handle land acquisition, NHAI should not be punished for their failure to do so within the time frame.
<b>According to the earlier MCA, the road developer was required to acquire land, while NHAI had to facilitate the process. "But now, NHAI has to acquire the land and even achieving 50-60 per cent land acquisition within the first three months is quite a task for the authority," </b>say NHAI officials.
<b>After over a year of procrastination, the Government is now considering a move to relax this requirement so that NHAI can hand over 50-60 per cent of total land required within first three months.</b>
But the MCA has now hit a new roadblock. State Governments have raised their concerns over the ambiguity in its competing road clause. The clause prohibits them to construct another competing road along the national highway for 10 years.
They have sought clarification about the MCA's definition of "competing roads" before committing their support because it makes the State agencies violating the clause liable to pay the concessionaire compensation equal to the difference between the realisable fee and the projected daily fee until the breach is rectified.
The State support agreement is a crucial element in the finalisation and acceptance of the MCA. It also ensures State's support in providing various clearances and assistance in terms of infrastructure facilities to the concessionaire. State support is also required for traffic diversion and police assistance during project implementation.
Despite over a year's haggling and cajoling, the new MCA has yet to clear many other roadblocks, highly placed sources in the Government fear.
The new toll policy, which was to be a part of the new MCA, has also not yet been firmed up. Private players, for instance, feel capping hikes in toll rates at just 40 per cent of the wholesale price index against 100 per cent earlier make it a lot less attractive.
Ironically, irrespective of these objections from various stakeholders, Planning Commission Deputy Chairman's advisor<b> Gajendra Haldia is pushing the new MCA relentlessly. Haldia, a 1973 batch Rajasthan cadre IAS officer, has also copyrighted the new MCA in his name.</b>
NHAI is understandably squeamish about the new MCA because it takes away a lot of discretionary powers from it. It reduces the day-to-day interaction between the builder and NHAI engineers and proposes a 'hands off' approach so that the NHAI is allowed to intervene only in the event of default.
"We will not be able to hold up approvals and money based on various construction linked specifications being unmet," says an official.
<b>Only time will tell whether the MCA will ultimately reduce delays, bring more efficiency and lower costs remains to be seen, as its promoters claim. But just now it has virtually derailed the NHDP.</b><!--QuoteEnd--><!--QuoteEEnd-->
Here comes another opportunity for new committee for Moron Singh.