Builders snub PPPs for 21 NHAI road projects

Builders snub PPPs for 21 NHAI road projects

Tepid response from highways builders to PPP mode coupled with current market conditions has resulted in focus to EPC route for road building as none of the 21 projects bid under PPP could elicit any response, the government said on Monday.

At present 180 road projects under PPP mode valued at Rs 1.9 lakh crore are under construction through various agencies.

Twenty-one projects were bid out by National Highways Authority of India (NHAI) through public-private-partnership (PPP) route, but none of the projects has received any response," Minister of State for Road Transport & Highways Krishanpal Gurjar told Rajya Sabha in a written reply.

He said, "due to lack of equity in the market there has been a lukewarm response from the builders for the projects under PPP mode during 2012-13 and 2013-14."

During 2013-14, NHAI had awarded 17 projects for a total length of 1,435.84 km of which two projects are on PPP mode, he said.