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India’s race to construct world-class infrastructure has encountered a huge speed block. For years, the fast expansion of the national road network was a source of pride. However, tensions between the government and the private sector are rising.
National highway developers have publicly declared “unrealistic” and severe building timetables. They say that the pressure to complete large projects in record speed is becoming unsustainable. This is more than just missing deadlines; it is about the long-term viability of our infrastructure.
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The NHBF Steps In
The National Highways Builders Federation (NHBF) has made a bold move. They communicated directly with the Prime Minister’s Office to express their concerns. The federation serves as the backbone of India’s road construction business.
Their message is clear: the current pace set by the administration may be harmful. They want a reassessment of the project structure for Public-Private Partnership (PPP) models. Developers fear that without a more balanced approach, the entire ecosystem will suffer a crisis.
Two Years for 200 Kilometers?
One of the key causes of this criticism is a recent tender for a 200-kilometer greenfield project. The deal provided a two-year building window. Builders claim it’s practically impossible to build an access-controlled freeway of this size.
Greenfield developments begin from scratch on wholly new land. They necessitate clearing woods, relocating utilities, and building complex interchanges. Setting a 24-month schedule for such a large operation is being seen as a formula for catastrophe.
Quality vs Speed
Speed is an excellent headline, but quality is what keeps a road standing. Developers are concerned that “haste makes waste” in the most literal sense. When schedules are shortened, the risk of breaching technical standards rises considerably.
The NHBF noted that tasks such as earthwork and concrete building curing should not be hastened. If the industry is pushed too hard, the longevity of these “world-class” highways may suffer. This would result in increased maintenance expenditures for taxpayers in the future.
The Land Acquisition Hurdle
The lack of available land is a major source of frustration among developers. Legally, the government is required to provide 90% of the land before development starts. In actuality, builders are frequently trapped waiting for small areas of land to be cleared.
When the clock is ticking on a two-year deadline, even a month’s delay in land transfer is deadly. Developers are requesting that the “appointed date” be more closely related to actual site preparation. Without this, they are penalised for delays that they did not cause.
Rising Financial Risks
The combination of tight timelines and excessive prices puts ventures at financial danger. Many developers are having difficulty obtaining funds from banks. Lenders are wary of projects that have a significant risk of exceeding their delivery timelines.
Strict deadlines frequently result in severe penalties and liquidated damages. For mid-sized businesses, one poor project with a “stringent timeline” might lead to insolvency. The industry advocates for a more flexible “concession agreement” that takes into account these ground realities.
Dispute Resolution Barriers
The current tightening of dispute resolution procedures has exacerbated the burden. Arbitration is now limited to cases over ₹10 crore due to legal changes. This has made many coders feel exposed.
If a project is delayed owing to government inaction, but the developer is still required to meet a tight deadline, they now have fewer options for pursuing justice. The sector seeks a more equitable approach in which risks are shared equally by the developer and the authority.
The Impact on Bidding
The most immediate impact of these rigorous rules is visible in the bidding process. Fewer corporations are stepping forward to bid on megaprojects. The “Build-Operate-Transfer” (BOT) model, which the government wishes to revitalise, is especially impacted.
Private investors are understandably leery of signing up for “mission impossible” timeframes. If only a few major players can afford the risk, competition suffers. This lack of competition may eventually raise the overall cost of roadway development for the nation.
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