A total of 653 National Highway (NH) projects started since 1 April 2014 have spilled beyond their original completion schedule, Union Minister for Road Transport and Highways Nitin Gadkari informed the Lok Sabha on Friday (6 February).
“From amongst all the National Highway (NH) projects started since 1st April 2014, there are 653 under construction projects that have spilled beyond their original completion schedule, without attaining any of the various stages of project completion and excluding projects under consideration for termination/ foreclosure,” the minister stated in a written reply to a question in the Lok Sabha.
Gadkari outlined that the primary reasons for delays include issues related to land acquisition, statutory clearances and permissions, utility shifting, encroachment removal, law and order challenges, financial crunch faced by concessionaires or contractors, and poor contractor performance.
Force majeure events such as the Covid-19 pandemic, heavy rainfall, floods, cyclones, and landslides have also contributed to project slowdowns.
On the financial impact, the minister clarified that cost escalation is not automatic in all delayed projects.
If delays are not attributable to the contractor, price escalation is paid as per contract conditions and may or may not result in additional cost depending on final project valuation.
Where the contractor is responsible, damages are imposed and no additional cost arises from the delay.
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