Question : Review of NH Projects

(a) whether the Government has taken up detailed review of National Highways (NHs) network during the recent past and if so, details thereof;
(b) whether such a detailed review has been made for the State of Odisha also and if so, the details and outcome thereof;
(c) whether the construction work on NHs has been delayed due to Covid-19 pandemic;
(d) if so, the extent to which the work of NHs has been affected;
(e) the details of the cost of various projects escalated due to such delay in the country including Odisha;
(f) the loss suffered to the exchequer as a result thereof; and
(g) the steps taken by the Government to expedite the construction work to achieve the target?

THE MINISTER OF ROAD TRANSPORT & HIGHWAYS
(SHRI NITIN JAIRAM GADKARI)
(a) & (b) The Government is regularly carrying out reviews of National Highway works, at different levels, in various States including Odisha. Detailed reviews have been held in the recent past with project implementing agencies, project developers, contractors / concessionaires, State Governments and other Central Ministries/Departments, in various States including Odisha, which lead to resolution of many project related issues concerning land acquisition, forest clearance, utility shifting, contractor performance, etc. inter-alia leading to better progress in construction.
(c) to (g) The construction works on National Highways got delayed to some extent due to the Covid-19 pandemic, and the loss of time was estimated to be generally in the range of 3-9 months depending upon the project parameters. Delay in projects sometimes leads to cost escalation. In BOT projects, escalation cost is absorbed by the Concessionaire. In other projects, price escalation is payable as per contract conditions, and the actual amount of price escalation and inter-alia the actual increase in project cost, if any, is known only on actual completion of the project and final settlement of bills.
The Government has taken several steps under Atmanirbhar Bharat like, granting time extensions for 3 to 9 months, relaxation in contract provisions for ensuring cash flow, direct payment to sub-contractors and release of retention/security money to augment cash flow, waiver of penalty in case of delay in submission of Performance Security (for new Contracts), to expedite the construction work to achieve the target.

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