Lok Sabha Question No. 1367 (UNSTARRED), answered on 2016-03-03
Subject: Fine on Rule's Violators
Ministry: ROAD TRANSPORT AND HIGHWAYS
Asked by: CHANDU LAL SAHU, OM BIRLA

be pleased to state:

- (a) the details of the number of National Highways contracts terminated for violation of rules set by the Government during the last three years, Project-wise and State-wise;
- (b) whether any fines were imposed on violators, if so, the details thereof;
- (c) whether the Government has laid down any guidelines for exceeding of estimated expense on road projects;
- (d) if so, the number of highway projects with cost overrun; and
- (e) whether the Government has observed rigidity in lending by banks for infrastructure projects, if so, the incentives and steps taken to improve financing of road projects in India during the last two years?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

## (SHRI PON. RADHAKRISHNAN)

(a) and (b) The State-wise details of the number of National Highways contracts terminated as per the contract  provisions  during  the  last  three  years  are  annexed.  If  the  contract  is  terminated  due  to  reasons attributed to contractor then fines are imposed as per the contract provisions.

(c) and (d) Cost  overrun  is  applicable  only  to  EPC/item  rate  contracts.  In  such  contracts,  there  is  a provision for payment of escalation due to delay if it is not attributable to Contractor. In case the project is delayed  due  to  reasons  attributable  to  the  Contractor,  liquidated  damages  are  to  be  imposed  and  no escalation is payable. Actual escalation due to delay or cost overrun is known only after completion of the project and final settlement of bills.

(e) Yes,  Madam.  Various  steps  have  been  taken  which  include  streamlining  of  land  acquisition, streamlining of environment clearances, exit for equity investors, premium re-schedulement, securitization of road sector loans, close coordination with other Ministries, revamping of dispute resolution mechanism, frequent reviews at Minister levels, etc. Other than this following steps have been taken :

-  One time fund infusion to revive and physically complete languishing BOT projects;
-  Permitting  100%  equity  divestment  after  two  years  of  construction  completion  for  all  BOT projects;
-  Harmonious substitution in the even of financial and concessionaire's default;
-  NHAI has been authorized to   extend   the concession  period   for  all  current  projects  in  BOT (Toll)  mode,  except  for  projects  where  tolling  is  permitted  from  the  Appointed  Date,   which are languishing during the construction period due  to causes NOT attributable to the concessionaire,  subject  to  certain  conditions.  Further,  NHAI  has  also  been  authorized to  pay annuities to the concessionaire corresponding to the actual period of delay NOT attributable to the concessionaire upon successful completion of the project i.e on achieving COD.

## GOVERNMENT OF INDIA MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

## LOK SABHA

## UNSTARRED QUESTION NO. 1367

ANSWERED ON 3 RD  MARCH, 2016

## FINE ON RULE'S VIOLATORS

## 1367.   SHRI CHANDU LAL SAHU: SHRI OM BIRLA:

## Will the Minister of ROAD TRANSPORT AND HIGHWAYS सडक परिवहन औि िाजमार्ग मंत्री

ANNEXURE REFERRED  TO  IN  REPLY  TO  PARTS  (a)  AND  (b)  OF  LOK  SABHA UNSTARRED  QUESTION  NO.  1367  ANSWERED  ON  03.03.2016  ASKED  BY  SHRI CHANDU  LAL  SAHU  AND  SHRI  OM  BIRLA  REGARDING  FINE  ON  RULE'S VIOLATORS.

## Details of the number of National Highways contracts terminated during the last three years

|   SL NO | State /UTs       |   Nos. of Projects Terminated |
|---------|------------------|-------------------------------|
|       1 | Andhra Pradesh   |                             1 |
|       2 | Assam            |                             1 |
|       3 | Bihar            |                             6 |
|       4 | Himachal Pradesh |                             1 |
|       5 | Jharkhand        |                             1 |
|       6 | Karnataka        |                             1 |
|       7 | Madhya Pradesh   |                             1 |
|       8 | Meghalaya        |                             2 |
|       9 | Mizoram          |                             2 |
|      10 | Odisha           |                             1 |
|      11 | Uttar Pradesh    |                             2 |
|      12 | Uttarakhand      |                             4 |
|      13 | NHAI             |                            44 |
|      14 | NHDP-IV          |                             4 |
|      15 | LWE              |                             2 |

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