Lok Sabha Question No. 118 (STARRED), answered on 2017-02-09
Subject: Incentives to Developers of National Highways
Ministry: ROAD TRANSPORT AND HIGHWAYS
Asked by: ANURAG SINGH THAKUR

## GOVERNMENT OF INDIA MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

## LOK SABHA STARRED QUESTION NO. 118

ANSWERED ON 09 TH  FEBRUARY, 2017

## INCENTIVES TO DEVELOPERS OF NATIONAL HIGHWAYS

*118.   SHRI ANURAG SINGH THAKUR:

| Will the Minister of ROAD TRANSPORT AND HIGHWAYS                                                                                                                                   | Will the Minister of ROAD TRANSPORT AND HIGHWAYS                                                                                                                                   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| सड़क परिवहन औि िाजमार्ग मंत्री                                                                                                                                                     | सड़क परिवहन औि िाजमार्ग मंत्री                                                                                                                                                     |
| be pleased to state:                                                                                                                                                               | be pleased to state:                                                                                                                                                               |
| (a) whether the Government proposes to incentivize developers of the National Highways (NHs) for early completion of the construction projects;                                    | (a) whether the Government proposes to incentivize developers of the National Highways (NHs) for early completion of the construction projects;                                    |
| (b) if so, the details thereof and the steps taken/being taken by the Government in this regard;                                                                                   | (b) if so, the details thereof and the steps taken/being taken by the Government in this regard;                                                                                   |
| (c) whether there is an apprehension that the companies are allegedly compromising with quality of the road construction in order to finish projects before the targeted time; and | (c) whether there is an apprehension that the companies are allegedly compromising with quality of the road construction in order to finish projects before the targeted time; and |
| (d) if so, the details thereof and the steps taken/being taken by the Government to ensure quality of the NHs constructed?                                                         | (d) if so, the details thereof and the steps taken/being taken by the Government to ensure quality of the NHs constructed?                                                         |
| ANSWER                                                                                                                                                                             | ANSWER                                                                                                                                                                             |
| THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS                                                                                                                                        | THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS                                                                                                                                        |
| (SHRI NITIN JAIRAM GADKARI)                                                                                                                                                        | (SHRI NITIN JAIRAM GADKARI)                                                                                                                                                        |
| (a) to (d)                                                                                                                                                                         | A STATEMENT is laid on the Table of the House.                                                                                                                                     |

STATEMENT REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  LOK  SABHA STARRED QUESTION NO. 118 ANSWERED ON 09 TH  FEBRUARY, 2017 ASKED BY SHRI ANURAG  SINGH  THAKUR  REGARDING  ' INCENTIVES  TO  DEVELOPERS  OF NATIONAL HIGHWAYS'.

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(a) and (b) Government  incentivizes developers  of National Highways  for early completion  of  construction  projects  through  multiple  initiatives  such  as  contractual provisions for bonus to be payable to concessionaires/contractors for early completion of  projects.  Further,  enhanced  quality  of  project  preparation  through  enabling  reforms for  expeditious  land  acquisition,  better  quality  of  DPR  preparation  through  use  of advanced technology and monitoring and supervision on a continuous basis are also facilitating faster project completion. Government has also approved an Exit Policy that enables private developers to take out their entire equity and exit all operational BOT projects two years from start of operations (COD) in a uniform manner. The proceeds from the sale of such divested equity may be first used in incomplete NHAI projects. Government has also approved a policy to revive the construction sector facing liquidity constraints by allowing release of 75% of the arbitral award to the contractor/concessionaire against Bank Guarantee without prejudice to the final order of the  Court  in  matters  under  challenge.  This  is  also  enabling  faster  project  completion. NHAI has already released an amount of Rs. 410.84 crores for 7 such cases. Further for MoRTH projects, an amount of Rs. 187.04 crores has been sanctioned for release in 2 cases.

(c) and (d) No such instance has come to the notice of the Government.

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