MORE ROAD PROJECTS VIA EPC ON CARDS
The ministry further said that there is a fund crunch for road projects in the market, as the banks have exhausted their quota for loans for road projects.
In a bid to provide much-needed impetus to the fund-starved highways sector, the road transport ministry is looking at increasing road projects to be awarded through Engineering Procurement Contract (EPC). The ministry further said that there is a fund crunch for road projects in the market, as the banks have exhausted their quota for loans for road projects. Lots of companies, who got projects last year, are also in the process of achieving financial closure and may not be interested in the projects on offer on PPP mode. Two PPP modes on which the projects are awarded, include Build, Operate and Transfer (BOT)-toll and BOT-annuity The third mode is EPC, where the project is funded by the government and the road developer is obligated to build the highway within the stipulated time. Currently, the road transport ministry and the National Highways Authority of India (NHAI) have to achieve an award target of 9.500 km of road projects as set by the PM0. NHAI, however, feels that awarding projects on EPC will take time and awarding projects in time, and
not money, may become a problem