New Delhi, Feb 3 (PTI) A parliamentary panel on Thursday suggested that the road transport ministry should either come out with upper and lower limits for bidding for road projects or establish a mechanism to strictly monitor the quality and progress of such projects awarded to substantially low bids.
In its report tabled in the Rajya Sabha, the Parliamentary Standing Committee on Transport, Tourism and Culture, said the road ministry and state governments should coordinate to address the issues being faced regarding the disbursal of Review of Central Road and Infrastructure Fund (CRIF) funds.
The committee further said that “the ministry may review the existing guidelines for awarding of tenders for road projects under CRIF or otherwise, since it is often found that the projects get awarded at substantially lower bids than the amount projected by the ministry/NHAI,” the report said.
It noted that in such cases, the concessionaire is more likely to not actually complete the work at all, or do it with sub-par quality. “In light of this, the committee recommends that the ministry may either come out with upper and lower limits for bidding for road projects or establish a mechanism to strictly monitor the quality and progress of road projects awarded to substantially low bids,” it added.
According to the report, in cases where poor performance and sub-par quality of road projects is noticed, the contractor must be suitably penalized and their past project record must be duly considered before awarding any road projects in the future.
It also recommends that a mechanism should be put in place by the ministry to carry out random checks regarding the quality of state roads funded by CRIF funds.
The report said the panel observes a major negative impact that the COVID-19 pandemic has had on the number of projects sanctioned under CRIF during 2020-21 and 2021-22. “The committee hopes that the subsequent waves, if any, of the pandemic do not have a significant impact on the road projects across the country and that the ministry would be able to sanction a greater number of works under CRIF in the coming years,” it said.
The report noted that 10 per cent of the allocation made to states under CRIF is to be earmarked for road safety works.
India has one of the largest road networks in the world. The development and maintenance of National Highways in India is in-part funded by the collection of cess, a duty of excise customs on petrol and high speed diesel oil. The Central Road Fund Act, 2000 was enacted to give statutory status to the existing Central Road Fund (CRF) governed by the resolution of Parliament passed in 1988, for development and maintenance of national highways.
The CRF Act, 2000 has been replaced by the Central Road and Infrastructure Fund, 2000 through Finance Act, 2018. PTI BKS MKJ
