4th December, 2002
Ministry of Road Transport & Highways  


ROAD CONSTRUCTION BY MULTINATIONAL COMPANIES


LOK SABHA

Under the National Highways Development Project, 12 contracts are being executed by foreign companies exclusively and 35 contracts as Joint Venture partners with Indian companies.

Foreign investors are allowed 100 per cent foreign direct investment in road sector. The total value of contracts for these projects is about Rs.12,505 crore. Out of 47 contracts where foreign companies are involved, 16 are lagging behind schedule. The contracts are delayed due to problems associated with land acquisition, slow mobilization, quarry problems, tree cutting, Gujarat earthquake, etc.

The contracts are at various stages of completion and many of the companies are still trying to make up the delay and complete the projects in time. As such, it is too early to assess the likely increase in cost due to delay.

The state-wise length being constructed by foreign companies/Joint Ventures involving Foreign Companies.

STATE

LENGTH (in kms)

Andhra Pradesh

575

Bihar

106

Delhi

13

Gujarat

266

Jharkhand

79

Karnataka

298

Maharashtra

29

Orissa

221

Punjab

22

Rajasthan

98

Tamil Nadu

93

Uttar Pardesh

404

West Bengal

243

This information was given by the Minister of State (Independent Charge) for Road Transport and Highways, Major General B.C,. Khanduri, AVSM (Retd.) in a written reply in the Lok Sabha today.