UPA Government derails National Highway Development Project (NHDP)

Now, that the UPA Government is nearing its term in few months, it can be conclusively stated that the National Highway Development Programme started by the NDA Government to improve a very crucial component of infrastructure development has been completely derailed by the UPA Government. There are chronic delays, ad-hocism, lack of monitoring and also play of extraneous forces in decision making. The ambitious NHDP has failed miserably on all counts presenting a copy book case of non-performance by the UPA in stark contrast to the exceedingly good work being done by the previous NDA Government headed by Shri Atal Bihari Vajpayee. Even the Planning Commission and the CAG Report has very adversely commented on the execution of these projects under the UPA.

The NDA Government has conceived planned and started the execution of the three Phased National Highway Development Programme. In the first instance. Phase – I consisted of Golden Quadrilateral (GQ:5846 km) linking the four major cities of Delhi Mumbai, Chennai and Kolkata which was approved in December 2000 at estimated cost of Rs. 30,000 crores. NHDP Phase – II was approved in December 2003 at an estimated cost of Rs. 34339 crores comprising mostly North South (Srinagar – Kanyakumari) and East-West (Silcher – Porbander). The total length being 7300 km.

Progress on Golden Quadrilateral (GQ) NHDP- I

1) Immediately after decision the NDA Government started executing the Project in right earnest. Lands were acquired fast, contracts awarded and work proceeded with very fast speed. As on 31/03/2003 against the total length of 5846 km, four laning was completed in 1327 km and work was under implementation on 4383 km. As on 31/03/2004 the completion was 2612 km and under implementation on 3234 km (source: NHAI Annual Report).

2) In fact Annual Report of the Department of Road Transport and Highway of the year 2007-08 (under the UPA Government) itself acknowledges at page 14 of the said report that after its approval in December 2000, most of the works were awarded in 2002 (when NDA was in power). It was because of this that though, the NDA left office in May 2004 yet as on 30/11/2004 4203 km length of four lane work against 5846 had been completed as confirmed by the Annual Report of the Department for the year 2004-05 at page 5.

3) The success rate during the NDA regime was 71% against target in the year 2002-03. Further, because of the earlier good ground work done it rose to 81% of the target in 2004-05. Thereafter, the decline started. Mr. T S Baalu the Union Minister for Road Transport and Highway in a public statement on August 06, 2004 declared that GQ has been rescheduled to be completed in 2005.

4) As against the total length of 5846 km under the GQ till March 2008 vide Annual Report 2007-08 only 5650 km have been completed and the balance still in progress. The point to note is that in spite of the very good sound beginning, nearly all the contracts being awarded during the NDA regime itself 100% completion of GQ is not there in spite of the claim by the Minister that it would be completed by December 2005 itself.

North South East West Corridor NHDP- II

5) As explained above the total length of the above is 7498 km out of which 981 km of the NSEW was also included in NHDP Phase – I. During the NDA regime the work for about 1000 km had been executed and as on 31/03/04 588 km four laning had been completed and the balance 475 km was under implementation (NHAI Annual Report). Mr. Baalu also made a public statement that balance contracts for these Corridors shall be finalised before March 2005 and the project will be completed by December 2007 as per schedule. This was to be completed in NHDP – II.

6) However, the progress on this front is deplorable. The Planning Commission in April 2008 undertook a progress review and it found that NHDP – II across 6647 km has fared even worse. While 811 km length was to be awarded in 2007-08, contracts were awarded for just 43 km, posting a dismal 5 percent achievement. Against a target of four laning 2013 km there was 51% achievement with just 1020 km completed.

7) About NHDP – I as well in the said review it was found that there has been just 49% achievement in terms of four laning targets for 2007-08. The Planning Commission sadly noted that the achievement rate of four laning came down for 81% in 2004-05 to just 49% in 2006-07 thus bringing down the progress rate in the entire Tenth Plan.

8) In fact, in their internal report to review projects for completion by Oct 2008, the NHAI itself found that not even a single of the 47 projects in the phase – II of North South East West Corridor could be completed.

9) On NHDP – III 12109 km project was planned to connect places of social and economic significance. Against a target of awarding concessions for 3278 km, there has been a meagre 9% achievement with contracts awarded for just 278 km. The story of NHDP – IV is equally unsatisfactory.

10) The NHAI had planned to award 61 projects by December 2008 under the BOT (Toll) Model to widen 6343 km of Highways at a project estimated cost of 67000 crores. Out of these only three projects have recently been awarded. This is the level of callous-indifference.

11) CAG criticizes the execution of work. This situation has also been criticized by the CAG in the recent Report wherein it found that majority of the 17 road works awarded under the public –private partnership in NHDP Phase - I were delayed. Only five were completed in time. The Government would loose about 400 crores from the projects because of irregularities on the part of National Highway Authority of India.

A Whimsical Minister and demoralised NHAI

12) The way Mr. T. R. Baalu is working in the last few years would show that he has his own whims and fancies. This has demoralised the officers and decisions are not being taken. In the last three years the National Highway Authority of India has seen five Chairmen. Even,the Delhi High Court adversely commented on the interference in the working of the NHAI.The Board Members are also changed quite frequently. The Minister fancies pliant officers and is very keen to encourage and at times force decisions which are favourable. There is a virtual paralysis in the functioning of NHAI. There is practically no effective monitoring and decision making is becoming a casualty.

13) It is very tragic to note that because of all this delays escalation in cost has become a major cause of worry. NHDP has also failed to attract reputed international builders. Because of all this NHDP – I and NHDP-II have seen their estimated cost increase by 26%.

14) The most crucial aspect is a gross failure on the most important infrastructure having long term implication for economy and development. The gains of NDA has been practically undone by the UPA.

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