Development of Northeast roads running smooth

01 Mar 2019 CW Staff

The National Highways and Infrastructure Development Corporation (NHIDCL) has not yet faced any stoppage in funding of new projects.

Recent reports indicate that new development projects in the Northeast will be 100 per cent funded by the Central Government. As per the previous policy, 90 per cent was funded by the government while the remaining had to be done by the state. However, ongoing projects – estimated to be completed by 2020 – will continue to be funded in a 90:10 ratio.

Nagendra Nath Sinha, Managing Director, NHIDCL, shares that 24 projects were awarded in FY2017-18; and 14 projects in FY2018-19. “None of these projects are on PPP mode and hence the issue of financial closure is not relevant to us,” he says. “However, of late, some firms have faced difficulties in arranging bank guarantees for performance security or mobilisation advances.”

Projects are awarded under NHIDCL in the EPC mode. The funds are allocated by the government under different heads: Special Accelerated Road Development Programme for North Eastern Region (SARDP-NE), NH(O) and External Aided Projects (EAP)-(JICA/ADB-Funding) to NHIDCL. While funding is yet to be firmed up for Bharatmala projects under NHIDCL, “JICA and other multilateral development banks or agencies could be other sources taped for taking up mandated infrastructure projects,” he says.

SHRIYAL SETHUMADHAVAN

Infrastructure Energy

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