The National Highways Authority of India (NHAI) has decided to slow down the process of awarding contracts for new highway projects. This would further delay the process of modernisation and expansion of the national highways by a few months.
The slowdown has happened following a writ petition filed by the National Highway Builders Federation (NBHF) in the Delhi High Court, challenging the new Model Concession Agreement (MCA) introduced by the finance ministry. The agreement restricts pre-qualified bidders from participating in the final bidding process.
The NHAI has already invited pre-qualification applications for around nine projects worth Rs 6,700 crore, but is yet to award the final contracts.
Major projects include four laning of the Hyderabad-Vijayawada section on NH-9 in Andhra Pradesh at a cost of about Rs 1,460 crore, four laning of the Panikoili-Keonjhar-Rimuli section on NH-215 in Orissa at a cost of Rs 1,086 crore, and four laning of the Chandikhole- Dubari-Talcher section on NH-200 in Orissa.
The NHAI has also invited pre-qualification applications for around 27 projects worth Rs 30,000 crore, which will be submitted by June.
Though the court has not stayed the bidding process, industry sources say the NHAI is going slow because of the uncertainty related with the verdict, which is expected to be delivered on July 9.
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