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Maharashtra government plans to build 10,000-km roads, will float tenders in October

In a first, the state is also looking to hand over road contracts for a minimum length of 100 km instead of 2 km.

mumbai Updated: Sep 09, 2017 01:22 IST
Ketaki Ghoge
Ketaki Ghoge
Hindustan Times
Mumbai,roads,Nitin Gadkari
Maharashtra chief minister Devendra Fadnavis and Union minister Nitin Gadkari during a press conference in Mumbai on Friday. (PTI)

The public works department of the Maharashtra government would float tenders and issue work orders to build 10,000 km of roads worth 30,000 crore by the end of this year, said chief minister Devendra Fadnavis on Friday.

Tenders would be issued in October and work orders in the following month, he said.

In a first, the state is also looking to hand over road contracts for a minimum length of 100 km instead of the earlier practice of giving small road contracts for 2 km. This is done to woo bigger companies and bring in transparency in these projects.

“These road contracts will be given out on the hybrid annuity model, based on the guidelines of the Centre,’’ said Fadnavis.

The hybrid annuity model is a balance between a public-private partnership contract and an engineering procurement contract.

The government puts in 40%, while the contractor contributes the rest. The private company recovers its investment over the next 15-20 years through installments from the government. The Centre conceived the hybrid annuity model largely to bring back private participation that had dried up in road projects over the last few years

The state cabinet gave an in-principal approval for the plan last year.

The chief minister added that over the next three years, the plan was to cover a majority of the state highways spread across nearly 92,000 km, rebuilding them on the lines of national highways.

“There is a nexus in the public works department with vested interests hijacking the road building contracts. Earlier, road work was distributed in small parcels sometimes even as small as 100 meters to 2 km. The quality of the work done was often substandard. We have now laid down conditions that will make the contractor liable for repairs and maintenance of these works for next 15 years so as to weed out such operators,’’ said a senior official.

He added that even the road maintenance contracts would now be given for a minimal of 10 km.

Union minister Nitin Gadkari also offered to help BMC in improving the condition of roads in the city.

First Published: Sep 09, 2017 01:22 IST