The Planning Commission panel opines that the Rs 12-crore revised cost estimate, as proposed by National Highways Authority of India, is too high  Of late, the cost of building four-lane highways has drawn contrasting opinions from the National Highways Authority of India (NHAI) and the Planning Commission. The reason: Recently, NHAI suggested raising building cost of each four-lane highway across India by 33% on the back of its fresh estimates that says around Rs 12 crore per km would be required for building each four-lane highway as against Rs 9 crore per km, estimated earlier by the Chaturvedi Committee Report.
Last year, a committee-led by Planning Commission member B K Chaturvedi, in its report recommended a cost allocation of Rs 9.5 crore and Rs 10 crore per km for constructing four-lane and six-lane highways, respectively.
When contacted an NHAI official refused to divulge further details, however confirmed the news on proposal.
Commission’s views
The Plan panel opines this revised cost estimate, as proposed by NHAI, is too high, leading to a difference in opinion between the two high-level authorities.
According to a senior government official, the cost of building four-lane highways would rise to around Rs 9.6 crore at 6-7% inflation and so the proposed Rs 12-crore estimate by NHAI seems to be overstated.
The construction cost of four-lane highways may surge to Rs 10.5 crore, but only after 4 years, says the Planning Commission.
NHAI differs
On the contrary, NHAI opines that its proposed cost estimate is primarily on account of expected increase in cost of construction materials and the wholesale price index (WPI). For instance, if there is an annual 7-9% rise in prices of construction materials and WPI goes up by 5% annually, then the cost of building a four-lane highway can shoot up to Rs 11.35 crore per km in 2010-11.
Supporting NHAI’s proposal, Gautam Patel, principal consultant of Coordinates Infrastructure Consulting, an Ahmedabad-based reputed advisory firm said to a TJCD correspondent, “Around 60-70% of the country’s traffic at present moves through the national highways, which is a significant rise as compared to 10-15 years earlier. Apart from the rise in traffic, there has also been a considerable surge in intensity of cargo. National highways currently have to accommodate large trailer containers that can carry cargo up to 30 tonnes, thereby driving the need for upgradation of design specification. Therefore, the proposal for cost escalation is not unjustified.”
Some facts
Surprisingly, the cost of building a four-lane highway stood at around Rs 4 crore per km during the period of 1999-2003 when the National Democratic Alliance (NDA) was in power. Besides, it was the NDA government that started the National Highways Development Programme across India.
Jeeta Bandopadhyay |
