Govt. fragmenting road projects to expand developers� involvement

Q: The ministry of road transport and highways is fragmenting road projects that failed to find bidders into smaller expansion in order to make them more attractive.

Sukhpreet, Delhi-NCR

6th November 2014

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Replies (10)

Do you know that the Asian Highway project, also known as the Great Asian Highway. The main objectives of this project to improve the highway systems in Asia. It is one of the three key features of the Asian Land Transport Infrastructure Development project that is sponser by ESCAP and the other two being the Trans-Asian Railway and facilitation of land transport projects.

Vineet Tendulkar, Mumbai

19th November 2014

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Because of this news, the shares of Punjllyod up by 5% on the Bombay Stock Exchange to Rs. 40.15. It is a joint venture project among countries in Asia and Europe and the United Nations Economic and Social Commission for Asia and the Pacific.

Deepankar Godbole, Mumbai

19th November 2014

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You are right Deepankar,
This company has created so many high quality infrastructure but this development will decrease the travel time and most importantly improve safety levels for travelers. With this order, Punj Lloyd's joint order collection now stands at Rs 24021 crore.

Vineet Tendulkar, Mumbai

19th November 2014

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@Shantanu,
The company told that project needs renovate of roads connecting Pasakha on the Bhutan border to Changrabandha on the Bangladesh border. The contract includes the proposed 6.558-km Pasakha access road and bypass to Jaigaon and Hasimara in West Bengal. It is expected that the project will complete in 30 months.

Deepankar Godbole, Mumbai

19th November 2014

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Hi all,
Infrastructure company Punj Lloyd has got a Rs 666-crore order to renovate a 90.6 km expansion of the Asian Highway network, which target to connect 32 countries in Asia and Europe.

Shantanu Kumar, Mumbai

19th November 2014

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It is a good move and will inspiration action in the short term which is the need of the hour. However, for the longer-term and for a deeper PPP market, larger projects are better as they attract a different class of developers. Also, these in-between expansion will need quick treatment too, otherwise they become the traffic bottlenecks. And again people will have to face the difficulties.

Jamuna sikhri, Delhi-NCR

6th November 2014

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@Lohit,
It means that the road ministry bring an annual qualification process that deal out developers according to the size of project they are qualified to bid for, based on their technical and financial assessment. While only a limited number of developers are qualified to bid for projects worth above Rs.1000 crore.

Jamuna sikhri, Delhi-NCR

6th November 2014

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Yes, you are absolutely right.......
Packaging projects into smaller sections opens the projects for many more developers. This also prevents cartelization by the bigger players in the sector. The road ministry has been looking at ways of wake up activity in the road sector that has seen a slowdown over the last two years in the face of an economic slow down.

Lohit Raj, Delhi-NCR

6th November 2014

You mean removing execution complication is one of the key reasons of the ministry of Road Transport and Highways.

Jamuna sikhri, Delhi-NCR

6th November 2014

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Yes, This is being done for projects being bid both under the engineering-procurement-construction (government-funded) and build-operate-transfer (public-private investment) models. Even the ministry is equally keen to widen participation by fragmenting the projects.

Some of the projects being restructured include the Hisar-Dabwali highway project (Haryana) and Panchkula-Yamunanagar (Haryana) highway project.

Lohit Raj, Delhi-NCR

6th November 2014

Why is the road ministry taken this step? Is there any reason behind it?

Jamuna sikhri, Delhi-NCR

6th November 2014

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Well Jamuna,
Projects that did not find bidders are being examined and now being let out for bids in smaller sections. In most cases, small stretches of land have either not been obtained or are yet to get environment or forest clearances, which could deter a developer. So those sections are being removed so that the rest of the road can be made.

Lohit Raj, Delhi-NCR

6th November 2014

This initiative is taken because the ministry of road transport and highways to to remove sections that are pending clearances and to increase competition before being opened for bidding again. So, the road projects are being broken into smaller segments.

Lohit Raj, Delhi-NCR

6th November 2014

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