Stalled Highways: The Ongoing Saga of India’s National Highway Projects

An In-Depth Analysis of the Delays and Challenges Since 2014

Since April 1, 2014, India’s ambitious National Highway projects have faced significant delays. Among the various projects initiated, 697 remain incomplete, surpassing their original timelines without achieving any critical milestones. This article delves into the state-wise details of these ongoing projects and explores the multifaceted reasons behind the prolonged delays.

Bottlenecks and Barriers: The Culprits Behind the Delays

Several persistent issues have been identified as primary reasons for the delays in these National Highway projects:

1. Land Acquisition Challenges: Securing the necessary land for highway construction has been a persistent hurdle. Lengthy negotiations and bureaucratic red tape often slow down the process.
2. Statutory Clearances and Permissions: Obtaining the required environmental and regulatory clearances can be a time-consuming affair, leading to significant delays.
3. Utility Shifting and Encroachment Removal: The process of relocating utilities like water, electricity, and telecom infrastructure, along with removing illegal encroachments, poses substantial delays.
4. Law and Order Issues: Disruptions due to local unrest or inadequate security measures can halt progress on construction sites.
5. Financial Crunch: Contractors and concessionaires frequently face financial difficulties, impeding their ability to continue work at the planned pace.
6. Poor Contractor Performance: Subpar performance by contractors and concessionaires further exacerbates the delay, necessitating the search for new contractors or renegotiation of terms.
7. Force Majeure Events: Unforeseen natural disasters, such as the COVID-19 pandemic, heavy rainfall, floods, cyclones, and landslides, have all contributed to the stalling of projects.

Financial Implications: Cost Escalation and Damages

The financial impact of these delays varies depending on the circumstances. If the delay is not attributable to the contractor, price escalation clauses in the contracts may come into play, leading to potential additional costs. The final financial burden is determined upon the project’s actual completion and the final settlement of bills.

Conversely, when delays are attributed to the contractor’s inefficiency or failure, damages are imposed. In such cases, there is no additional financial burden on the project’s budget, as the cost of delays is borne by the contractor.

NHAI’s Financial Strategies and Borrowings

Since 2014, the National Highways Authority of India (NHAI) has taken significant financial measures to support the completion of these projects. Loans and other borrowings amounting to approximately ₹3.77 lakh crore have been secured to fund the ongoing and future highway projects entrusted to NHAI.

Government’s Commitment and Way Forward

In a written reply to the Rajya Sabha, Union Minister for Road Transport and Highways, Nitin Gadkari, reiterated the government’s commitment to overcoming these challenges. Efforts are being made to streamline processes, expedite clearances, and address financial issues to ensure the timely completion of highway projects.

The saga of India’s National Highway projects is a complex one, marked by numerous challenges and delays. However, with concerted efforts from the government and stakeholders, there is hope for overcoming these obstacles and achieving the ambitious goals set for the nation’s infrastructure development. As the country continues to strive for progress, the completion of these highways remains a critical milestone on the path to economic growth and connectivity.

State/UT wise details of projects spilled beyond their original completion schedule without attaining any of the various stages of project completion