28th August, 2002
Ministry of Road Transport and Highways  


GEN. KHANDURI CALLS UPON CONSTRUCTION INDUSTRY TO CUT TIME AND COST OVERRUN THROUGH BETTER PROJECT MANAGEMENT


The Minister of State (Independent Charge) for Road Transport and Highways, Maj. Gen. (Retd.) B. C. Khanduri today said the Government would take steps to increase the productivity of the construction industry. He called for better project management techniques for improving the quality of construction and to cut time and cost overrun. Citing the example of National Highways Development Project (NHDP), he said it is being ensured that there is no time and cost overrun in implementing the largest highway project ever undertaken in the country. He was addressing the first Construction Summit organized by Confederation of Indian Industry and Construction Federation of India, here.

Speaking on the occasion, the Minister said that the foundation of a higher economic growth rate lies on sound and efficient infrastructure. "Construction sector accounts for 60-70 % of the investment in infrastructure development. For infrastructure to be able to meet the demand for higher economic growth, it is imperative that construction sector should equip itself with increased capability and efficiency. I would like to assure you that the Government is committed to provide a conducive and facilitating environment to the construction sector. However, the industry would need to increasingly modernize and adopt state of the art technologies for construction and project management ", he said.

During the last few years, the road sector in the country has undergone a visible change with the launch of the NHDP. The NHDP is a major initiative towards qualitative and quantitative enhancement of the National Highways, involving development and 4/6 laning of about 13,146 km of road at a cost of over Rs. 54,000 crore. The National Highways Authority of India (NHAI) is implementing the NHDP. Besides this, the NHAI is also implementing four-laning of about 400 km road length including improving connectivity to 10 major Ports. National Highways other than the length under NHDP (constituting a length of about 44,000 km) are also being taken care of. During the last three years, riding quality of about 23,000 km length of National Highways has been improved under the Improvement of Riding Quality Programme(IRQP). Altogether, the Government is presently spending nearly Rs. 15,000 crore per annum on the road sector.

The Minister said that NHAI has established efficient contract management system for quality and timely delivery of projects under NHDP and to attract private investment. "Conditions of contracts are fair and equitable. The contracts also provide payment of advances to contractors and adjustment of contract price based on published indices. Independent Consultants are engaged for each project for proper supervision and efficient decision-making. The contracts also have provision for Dispute Review Boards, so that disputes are resolved at the earliest", he said.