Cabinet to take up Road regulator Bill soon

The Roads ministry is all set to present the Regulatory Authority for Highways in India Bill, 2013, before the Cabinet. This will enable the road sector which is under stress due to lack of private sector participation, to get a regulator immediately.

Bill send by Road ministry to other ministries for comments

The Bill has been send by the Roads ministry to other ministries for their comments. Incidentally, the industry has been demanding the setting up of an independent regulator for resolving various contract disputes as well as renegotiating future contracts. The recommendation from the ministries to which the Bill has been send are awaited after which it will be taken to the Cabinet. The regulator will be appointed through an executive order, following which Parliament’s approval can be sought due to the time lag required for the Bill to be passed.

Roads regulator expected to initiate projects worth Rs.20,000 crore

The roads regulator have to come up with solutions for numerous road projects that have been stalled due to litigation and arbitration. If all goes well, officials in the Roads ministry expect that projects worth Rs.20,000 crore can be initiated. Some of the adjudicatory powers that the regulatory body possesses are related to contract dispute resolution, renegotiation of future contracts as well as enforcement of contractual provisions.

Timing of setting up of regulator questioned

However, the timing for the setting up of the regulator has been questioned by industry experts since the term of the current government would be ending in a few month’s time. Since the appointment of a regulator takes time, even if the Cabinet’s approval is received, it has to be passed in Parliament. Moreover, it is yet to be seen whether the next government agrees to the role of a regulator.

Road projects suffer as private companies shy away

The roads sector has taken the brunt of private players shying away from getting involved in road projects. Due to this scenario prevailing, the government has been able to award only 500 km of road projects in 2013. The reason cited by private companies from staying away from road projects is due to lack of funds. Moreover, they have also sought a rescheduling of premium that they need to pay the National Highways Authority of India (NHAI). Incidentally, NHAI had to cancel six road projects across various states due to land acquisition issues.

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