Lok Sabha Question No. 3134 (UNSTARRED), answered on 2020-03-12
Subject: Targets of NH Construction
Ministry: ROAD TRANSPORT AND HIGHWAYS
Asked by: Rahul Kaswan

## GOVERNMENT OF INDIA MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

## LOK SABHA UNSTARRED QUESTION NO. 3134

ANSWERED ON 12 TH  MARCH, 2020

## TARGETS OF NH CONSTRUCTION

## 3134. SHRI RAHUL KASWAN:

## Will the Minister of ROAD TRANSPORT AND HIGHWAYS

## सड़क परिवहन औि िाजमार्ग मंत्री

be pleased to state:

- (a) whether the Government has fixed any new target for construction of National Highways (NHs) in the country;
- (b) if so, the details thereof along with the length of the highways proposed to be constructed in the country, State-wise;
- (c) the details and the salient features of the models being adopted for construction of such highways along with the length of roads likely to be constructed under each model; and
- (d) the  details  of  share  of  the  Government  and  the  private  sector  under  such  models  of construction?

## ANSWER

## THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS

## (SHRI NITIN JAIRAM GADKARI)

(a)  &  (b)  Development  and  maintenance  of  National  Highways  (NHs)  is  a  continuous process.  NH  projects  are  identified  annually  as  per  available  budgetary  outlay,  inter  se priority,  requirement  of  connectivity  and  traffic  density.  Government  has  fixed  a  target  of 11000 Km for construction in the country for the current fiscal year.

(c) & (d) Salient features of different models being adopted for construction of highways are placed at Annexure-I and length of roads likely to be constructed under each model is placed at Annexure-II.

ANNEXURE REFERRED  TO  IN  REPLY  TO  PART  (c)  to  (d)  OF  LOK  SABHA UNSTARRED QUESTION NO. 3134 FOR ANSWER ON 12.03.2020 ASKED BY SHRI RAHUL KASWAN REGARDING TARGET OF NH CONSTRUCTION.

Salient features of the models being adopted for construction of National Highways:

1. Public  Funded  Projects :    In  such  types  of  model,  100%  funding  is  provided  by Government. Different types of Public Funded Models are as under:
2. (i) Item Rate : Detailed design, specifications & estimates are provided by the employer and contractor  is  paid  for  the  quantities  executed  as  per  item  wise  rates  quoted  in  the  Bid. Cost/Risk of any variation in quantity is borne by the employer.
3. (ii) Engineering,  Procurement  and  Construction  (EPC): In  such  types  of  models,  full freedom to plan, design and construction is given to the contractor and core requirements of design,  construction,  operation  and  maintenance  are  specified  in  schedules.  Scope  for adopting best practices and innovation to optimize the efficiency and economy is available in such types of model. Payments are linked to specified stages of construction. The Contract Price is subject to adjustment on account of variation in the cost and change in scope ordered by employer.

## 2. Public Private Partnership Projects (PPP):

Different types of PPP Models are as under:

- (i)  BOT (Toll): Private developers/ operators, who invest in toll-able highway projects, are entitled  to  collect  and  retain  toll  revenue  for  the  tenure  of  the  project  concession  period. Responsibility for design and development of the project is vested with the Concessionaire under this mode. He is also responsible for Operation and Maintenance (O&M) of the project for the entire concession period after it is developed and put to commercial operation. The tolls  are  prescribed  by  the  authority  on  per  vehicle  per  km  basis  for  different  types  of vehicles.
- (ii)  BOT  (Annuity): As  in case of BOT  (Toll)  Projects, responsibility for design, development and O&M of the Project Section for the entire Concession Period is vested with the  Concessionaire  for  the  Project.  Concessionaire  is  given  Annuity  Payments  during  the O&M period as per provisions  of  the  Concession  Agreement.  Tolling  rights  during  O&M period vest with the employer after declaration of Commercial Operation of the developed section.
- (iii) Hybrid Annuity Model (HAM): Under this model, 40% of the Project Cost is paid by the Government/ Executing Agency as Construction Support/ Grant to the private developer and  the  balance  60%  is  to  be  arranged  by  the  successful  bidder  during  the  construction period. The Concessionaire is paid back the amount of 60% along with interest and Operation & Maintenance (O&M) payment in the form of annuities during operation period. While the concessionaire is responsible for the Operation & Maintenance during the concession period. The traffic risk is taken by the project Executing Agency/ Employer. Tolling rights during the O&M period are vested with the employer after declaration of commercial operation of the developed section.

ANNEXURE REFERRED  TO  IN  REPLY  TO  PART  (c)  &  (d)  OF  LOK  SABHA UNSTARRED QUESTION NO. 3134 FOR ANSWER ON 12.03.2020 ASKED BY SHRI RAHUL KASWAN REGARDING TARGET OF NH CONSTRUCTION.

Details of NHs under implementation in the country, as on 31.12.2019 under different models are as below:

| S. No   | Model          |   No. |   Length (in km) |   Cost (in Rs. crore) |
|---------|----------------|-------|------------------|-----------------------|
| 1       | Item Rate      |   330 |             5476 |                 24565 |
| 2       | EPC            |   929 |            30594 |                340722 |
| 3       | BOT (Toll)     |    53 |             6348 |                 63870 |
| 4       | BOT (Annuity)  |    12 |              934 |                 16658 |
| 5       | Hybrid Annuity |   116 |             6388 |                139766 |
| Total   | Total          |  1440 |            49740 |                585582 |

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