Latest news with #ShaileshAgarwal
Mint
13 hours ago
- Business
- Mint
Centre overhauls highways construction bid process, timelines set for pre-bid clearances
NEW DELHI : In a move to speed up highway construction, the Centre has synchronized project approvals, awards and appointment of developers with milestones for land acquisition, environment, forest and wildlife clearances. These milestones will be applicable for highway building and awarding agencies including the National Highways Authority of India (NHAI), NHIDCL (National, Highways and Infrastructure Development Corporation Ltd) and the ministry of road transport and highways (MoRTH's) own road construction wing. They reflect specific timelines for taking various statutory clearances before awarding any highway project. Beyond land norms Notably, the timeline goes well beyond the need to acquire 90% of land before inviting bids -- a practice that has been followed for highway awards for the past few years. Also read: Independence Day: Toll relief, annual pass for pvt vehicles on highways from 15 Aug Now, the ministry has mandated that work on securing forest, environment and wildlife clearances should begin on approval of a highway alignment and the process has to be completed before bids are received. This assumes importance given that the Centre plans to award around 9,000 km of highways in FY26, with the pre-bid exercise seen as important to prevent contractual disputes, and time and cost overruns. According to a MoRTH circular issued to all highway development and awarding agencies, specific timelines would have to be followed even for securing clearance from Indian Railways and Inland Waterways Authority of India and also for finalising certain estimates before bids are invited. 'Delays and disputes often stem from awarding projects before land acquisition and clearances are substantially completed. When contractors face site access issues, legal hold-ups, or pending compensation, it stalls progress from day one. Synchronizing project awards with land readiness and statutory clearances isn't just good practice, it's a game-changer. It allows contractors to mobilize immediately, reduces redesigns, and brings greater cost control and timeline certainty," said Shailesh Agarwal, partner, risk consulting (infrastructure), EY India. 'For alignment to take root, clear intent must be supported by consistent execution. A centralised digital platform to track clearance progress, field-level empowerment to address last-mile issues, and the appointment of independent readiness verification agencies can ensure projects are awarded only when truly execution-ready," he added. Land acquisition milestones With respect to land acquisition itself, the MoRTH circular said that the process will begin 60 days after a highway's alignment is finalised, and notification regarding land acquisition is to be issued before receipt of bids. Also, 90% of right of way (RoW) length should be awarded before a letter of award (LoA) is issued. RoW refers to the land required for building a highway. Also read: Centre asks for measurable socio-economic benefits reports from highway development In addition, timelines have also been provided for acquiring land to construct approach road to a highway project. Accordingly, MoRTH has now decided that possession of 100% of RoW length should be available in an approach stretch of up to 1 km on either side of a standalone bridge or road over bridge project on or before issue of LoA. Also, possession of 100% of the ROW length has to be made available in an approach stretch of upto 1 km on either side of any project with a tunnel on or before issue of LoA. 'Assessment of value and payment for structures should be considered as an integral part of the compensation payment on land acquisition for the purpose of the above milestones," the MoRTH circular said. PadmaPriya, Partner, Grant Thornton Bharat, said, 'Disputes frequently arise when projects are awarded before obtaining critical clearances such as land acquisition, environmental, forest, wildlife approvals, railways, archaeological survey etc. Contractors face delays in mobilization and execution due to inaccessible project sites or regulatory restrictions, leading to claims for time and cost overruns. These unresolved issues can strain government-contractor relationships, invite arbitration or litigation, and ultimately slow down the speed of infrastructure delivery." 'However, the recent initiatives taken by MoRTH are very promising to overcome the hindrances occurring in providing unencumbered project sites to the contractors. If these initiatives are adopted with the fullest of their spirit, they may resolve upto 90% of such cases where the government faces delays and cost overruns," she added. While highway projects are very complex in nature, synchronizing the award of projects with the completion of statutory milestones ensures that projects are 'shovel-ready" at the time of award. This reduces uncertainty and prevents post-award delays. 'Adherence to these timelines brings predictability, enables smooth contractor mobilization, and minimizes the scope for contractual disputes, thereby improving cost control and accelerating project completion," Padma Priya said. The government has already implemented various initiatives such as the Bhoomi Rashi portal for ensuring that compensation is given for land acquisition on a real-time basis and Parivesh Portal, a single window system for obtaining all type of approvals. 'While milestone-based synchronization is a significant step forward, challenges still remain in terms of inter-departmental coordination, procedural bottlenecks, and real-time tracking of clearance statuses. Leveraging digital tools for transparency, creating single-window systems for approvals, and decentralizing certain decision-making powers can enhance efficiency," Padma Priya said. Also read: India plans to offer grants, ease regulatory norms for rare earth processing amid China supply woes
Mint
25-05-2025
- Business
- Mint
State-run Rail Vikas Nigam Ltd may end pact with Turkey's Tumas
India's Rail Vikas Nigam Ltd (RVNL) may end its year-old agreement with Turkish engineering firm Tumas after their partnership failed to make progress, two people aware of the matter said. The state-run company may now look for partners from other countries to replace Tumas. RVNL and Tumas India Pvt. Ltd had tied up in April 2024 to collaborate on infrastructure projects in India, particularly in public transport. The pact aimed at fostering partnership and cooperation in infrastructure projects, including railways, metros, and related areas. 'RVNL may put the memorandum of agreement in abeyance, and nix it completely later, as it had made no progress since being signed a year back. The company will evaluate whether such partnership itself is required now, as similar collaborations are being pursued with a few other key countries also in line with company's aggressive global expansion push," one of the two people cited above said on the condition of anonymity. Also read | Celebi case: State has plenary powers in protecting national security, says govt The move comes in the wake of India's strained relations with Turkey, which supported and armed Pakistan in its recent military conflict with India. Earlier this month, the government withdrew the security clearance of Turkish firm Çelebi's Indian airport services arm citing national security risks, halting its operations at nine airports, including Delhi and Mumbai. Later, a few travel and tour operators voluntarily removed Turkey from their tour packages. Queries emailed to the railway ministry and RVNL remained unanswered till press time. RVNL, a Navratna PSU, is the listed infrastructure and project implementation arm of Indian Railways while Tumas is an engineering, procurement and construction company. MoU insignificant now According to the two people cited above, the MoU itself has become insignificant for RVNL, as it is now pursuing public-private-partnership (PPP) collaborations with leading global firms from the UAE, Europe, South Korea, and Spain for metro, EPC, and solar projects. These collaborations are expected to help RVNL to strengthen and modernize its own construction abilities for Indian Railways projects and other opportunities for construction of public transport projects within the country. 'Infrastructure is not just about concrete and steel, it is about sovereignty and national resilience too," said Shailesh Agarwal, partner, risk consulting (infrastructure), EY India. "Projects, especially in border regions or involving communication systems must be safeguarded to minimize the risk of external interference. While we welcome global expertise, it must come from nations that respect India's security and stand by us in moments of crisis," Agarwal said. Also read | Turkey's Celebi to Delhi HC: Security clearance withdrawal has hurt business 'The recent conflict is a reminder that strategic autonomy begins with strategic choices including who we allow to build our future. Moreover, India today has the technical and engineering capability to execute these projects independently. From large-scale expressways to complex mountain tunnels, Indian firms have consistently delivered world-class infrastructure across challenging terrains. In fact, India firms are more competent when it comes to infrastructure execution. India's engineering sector has matured to meet global standards," he added. RVNL has spread its wings in India's infrastructure sector, expanding beyond its core railway expertise into highways, metro systems, and international markets. As a Navratna PSU, it has been instrumental in executing large-scale, high-impact projects such as the Dedicated Freight Corridor, Chardham Highway, the first-of-its-kind Pamban bridge in Rameshwaram and multiple metro rail systems. Also read | Dealing with 'delicate' subject: Govt to Delhi HC on Celebi petition The company is now aggressively expanding overseas, having successfully executed the UTF Harbour project in the Maldives and actively pursuing multi-billion-dollar infrastructure projects across West Asia, Africa, South America, and South Asia. It is bidding for ₹400 billion worth of projects and expanding into new infrastructure segments, including build-operate-transfer projects.
