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NHAI Struggles with Tech-Resistant Firms: Minister Gadkari

2023-10-18

The National Highways Authority of India (NHAI) is encountering challenges in crafting detailed project reports, as certain companies are hesitant to embrace new technology, according to statements made by Union Minister Nitin Gadkari on Tuesday.

The Minister for Road Transport and Highways emphasised that the government is actively promoting the adoption of innovative technologies. Speaking at the 'CRISIL India Infrastructure Conclave 2023,' he noted that major players in the steel and cement industries have been involved in price-fixing schemes.

Gadkari remarked, "The steel and cement industries, whenever they have the opportunity, engage in collusion to inflate prices."

He further highlighted the difficulty in assessing companies responsible for generating detailed project reports, stating that, "The creation of DPRs poses a significant challenge for NHAI... there is no flawless DPR in any project." Known for his candid opinions, Gadkari added, "While creating DPRs, these companies engaged in DPR development are resistant to adopting new technology, innovative research, and the quality of DPRs is so subpar that there is consistently a need for additional work."

Regarding the high logistics costs in India, Gadkari pointed out that logistics costs in the country stand at 14-16 per cent, as compared to 8-10 per cent in China.