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Lagging infra projects can take a toll on the economy

A majority of the 17 road works awarded under the public private partnership (PPP) as part of Phase-I of National Highways Development Programme (NHDP) were delayed, according to a recent report by Comptroller and Auditor General of India on roads states.

Of the 17 projects, only five were completed in time, while there were delays of two-42 months in others, according to the report.

The government would also lose revenue to the tune of about Rs384 crore from the projects under NHDP due to the irregularities on the part of the National Highways Authority of India (NHAI). NHAI did not prepare a detailed project report or levy penalties upon concessionaire for eight of the roads and highway projects under PPP programme.

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Toll collection started late in all the four projects reviewed under the BOT-annuity basis resulting in revenue loss of Rs23.89 crore.

Under the BOT-toll system, the contractor recovers the investment through toll collection, while in BOT-annuity projects, the developer takes payments in instalments from the government.