Lok Sabha Question No. 3102 (UNSTARRED), answered on 2020-03-12
Subject: Declaration of SHs as NHs
Ministry: ROAD TRANSPORT AND HIGHWAYS
Asked by: Chandra Sekhar Sahu

## GOVERNMENT OF INDIA MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

## LOK SABHA UNSTARRED QUESTION No. 3102

## ANSWERED ON 12 TH  MARCH, 2020

## DECLARATION OF SHs AS NHs

## 3102.  SHRI CHANDRA SEKHAR SAHU:

## Will the Minister of ROAD TRANSPORT AND HIGHWAYS

## सड़क परिवहन औि िाजमार्ग मंत्री

be pleased to state:

(a)  the  details  of  the  State  Highways  (SHs)  declared  as  National  Highways(NHs)  by  the Government since 2014;

(b) whether the Government has declared more NHs than it can offend to finance resulting in huge burden on exchequer as the NH projects are facing shortage of funds; (c) if so, the details thereof;

(d) the details of the road projects which are stuck due to the shortage of funds along with the estimated cost involved therein; and

(e) the steps taken by the Government to mobilize resources to complete the stuck projects without further delay?

## ANSWER

## THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS

## ( SHRI NITIN JAIRAM GADKARI )

(a) The Ministry keeps on receiving proposals from various State Governments/ Union Territories (UTs), etc., for declaration of State roads, including State Highways (SHs), as new National Highways (NHs). The Ministry considers declaration of some State roads, including SHs, as new NHs from time to time based on requirement of connectivity, inter-se priority and availability of funds.

About 41,147 km length of State Roads, including SHs, have been declared as NHs since April, 2014.

(b) No, Sir.

(c) Does not arise.

(d) and (e) No projects are stuck up due to shortage of fund. However, some NH projects are delayed  due  to  multiple  reasons,  such  as  poor  performance  of  contractor,  utility  shifting, delay in environment/ forest clearance, land acquisition, cash flow problem of the concessionaire/ contractor, law and order problems, etc.

Government holds regular review meetings at various levels with Regional Officers, State  Governments  and  Concessionaires/  Contractors  to  resolve  the  issues  and  ensure completion of projects within stipulated time. Further, various steps such as streamlining of land acquisition, one time fund infusion, close coordination with other Ministries, revamping of dispute resolution mechanism, etc. have been taken up.

The Government has taken initiatives to implement projects primarily on Engineering-Procurement-Construction (EPC) mode and Hybrid Annuity Model (HAM) of Contracting. For projects awarded on HAM, 40% of the Project Cost is paid by Government/ National Highways Authority of India (NHAI) as contribution support/ grant to the Private Developer  and  the  balance  60%  is  arranged  by  the  successful  bidder  in  lieu  of  deferred Annuity Payments during Concession Period.

Government  has  also  taken  initiatives  for  raising  funds  through  monetization  of completed  road  projects  on  Toll-Operate-Transfer  (TOT)  mode.  Further,  NHAI  has  been authorized to raise funds through Infrastructure Investment Trust (InvIT) and securitization of toll  revenue  so  as  to  get  long  term  borrowing  from  Banks,  etc.  These  measures  have successfully enabled mobilization of additional resources.

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