Question : Cost Escalation in Highways

(a) whether the shortage of sand has pushed up the cost of building highways in the country and if so, the details thereof;

(b) whether the Government has devised any alternative mechanism to reduce the cost of building highways in the country and if so, the details thereof;

(c) whether there has been cost and time overrun in many National Highway projects in the country;
(d) if so, the details thereof during each of the last three years and the current year, State and project-wise;

(e) whether with the aim to minimize the cost overrun and delays in completion of highway projects the process of project preparation is being amended, if so, the details thereof; and

(f) the corrective measures taken by the Government to expedite the work on these projects?

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

(SHRI MANSUKH L. MANDAVIYA)

(a) to ( b) Any increase in the cost of material pushes the cost of the project. It applies for any project located in any part of the country. To face this problem, ministry encourages alternate materials like use of Fly Ash in embankments, cement treated base/sub-base etc., Cost Benefit Analysis for changing from the Rigid pavement to Flexible pavements due to constraints of limited/non-availability of sand in affected areas. Development of Green Field Corridors in order to reduce cost of land acquisition & utility shifting, forest diversion etc. are also explored.


(c) to (d) The Details of the delayed projects is given at Annexure-I. For cost overrun in EPC & Item Rate contracts, there is a provision for payment of escalation due to delay. In case the project is delayed due to reasons attributable to the contractor, liquidated damages are to be imposed and no escalation is paid.

(e) to (f) Equipment based surveys and investigation (Lidar technology) has been introduced to bring out accuracy in the DPR preparation to avoid delays. The corrective measures taken by the Government to expedite the work on these projects are given in Annexure-II.