FCC

Over 670 Road Projects behind schedule, Minister informs Parliament

2023-08-01

According to a statement made by Minister for Road, Transport and Highways, Nitin Gadkari, in the Lok Sabha, there are a total of 1,612 road projects currently under construction across the country, including in Tamil Nadu, as of June 30, 2023. Out of these, 674 projects have experienced delays in their original schedules due to various reasons.

However, Minister Gadkari clarified that not all of the delayed projects are subject to cost escalation. The payment for price escalation is based on the contract conditions, and the actual amount of such escalation and any increase in project cost can only be determined upon the project's actual completion and final settlement of bills.

In cases where the delay can be attributed to the contractor, penalties are imposed, and price escalation is not paid. Therefore, there is no additional cost incurred due to such delays.

To ensure efficient progress, the ministry actively monitors the national highway projects in close collaboration with project implementing agencies, state governments, and contractors/developers. Periodic reviews of the projects are conducted at various levels, and several measures are implemented to enhance the liquidity of funds available to contractors/developers and expedite the project's progress.