Bharatmala project hit by delays, shortage of funds

Ambitious project may be set back by issues, including land acquisition delay

NEWDELHI: Prime Minister Narendra Modi’s ambitious ₹5.35 lakh crore Bharatmala Pariyojana, an umbrella project launched in 2017 and hailed as India’s biggest highways development plan, is beset by delays at multiple implementation stages amid funding shortages, according to a central government report reviewing its progress until September.

According to the report, a copy of which has been reviewed by Hindustan Times, project implementation under the programme could also be set back by delays in land acquisition, detailed project report (DPR) preparation, the bidding process, appointment of concessionaires and physical construction.

“Projects implemented under Bharatmala Pariyojana could potentially be delayed during multiple stages across the project lifecycle,” said the National Highways Authority of India (NHAI) report.

The first phase under the project has an estimated investment outlay of ₹5.35 lakh crore according to the investment plan approved by the Cabinet Committee on Economic Affairs (CCEA), spanning a period of five years (from FY 2017-18 to FY 2021-22).

The mammoth project is aimed at bridging critical infrastructure gaps through the development of economic corridors, so-called inter- corridors and feeder routes, border and international connectivity roads, coastal and port connectivity roads and greenfield expressways.

A total of around 24,800 km are being considered for construction in Phase I of the project. In addition, it also includes 10,000 km of work remaining under the National Highways Development Project (NHDP), an older initiative.

“Considering the massive scale of the program, it is extremely important to manage the implementation of the program and monitor its physical and financial progress through a robust Program Management Office (PMO).

AT Kearny and CRISIL were appointed as the program management consultants (PMCs) to support... managing the implementation of Phase 1,” the report said.

Different components of the project will be implemented by the ministry of road transport and highways (MoRTH) through various agencies -- NHAI, National Highways and Infrastructure Development Corporation Limited (NHIDCL) and state Public Works Departments (PWDs) and state Road Development Corporations (RDCs).

FINANCIAL WOES

The report has noted that the total capital cost for the awarded projects exceeds the cost approved by the CCEA by 50%. The capital cost of 6,361 KM of projects awarded under Bharatmala is ₹1.475 lakh crore.

Of this 4383 km of projects worth ₹1.03 lakh crore are those that have been awarded afresh, with the remaining coming from existing and incomplete NHDP projects.