Building 20000 km roads per year achievable: Kamal Nath

Published on Fri, Sep 18, 2009 at 20:04 |  Source : CNBC-TV18

Updated at Fri, Sep 18, 2009 at 22:05  

Like this story, share it with millions of investors on M3
0
0
Share on Tumblr
Kamal Nath, Road and Transport Minister

Excerpts from What's Hot on CNBC-TV18 Watch the full show ยป

RELATED NEWS

Road and Transport Minister Kamal Nath has set an ambitious target for himself and he is determined to achieve it.

In an exclusive interview to CNBC-TV18's Senthil Chengalvarayan, Nath said he is on the road to achieving the 20,000 kilometre per year target. He also said that his biggest challenge is capacity building.

Here is a verbatim transcript of the excerpts of Kamal Nath's interview on CNBC-TV18. Also watch the accompanying video.

Q: What target have you set yourself?

A: We have to make a visible difference. I looked at what makes a visible difference across the country. It was a minimum of 7,000 kilometres a year. Now, 7,000 translates into approximately 20 (kilometres per day) and we were doing about 2 (kilometres per day). And I said from 2 to 20 we are going to make this quantum jump.

Q: Is that an aggressive target that you had set out or do you really think you can achieve that?

A: I think we can achieve that. I not only think that, I believe we will achieve it. We must recognise that in July of this year, we have done 10 kilometres. We have reached that figure. This year, we will build more roads than what had been built in five years.

Q: What the citation said was that here was somebody who is finally vigorously engaging with the problems of the sector? So, it was almost a relief that here is somebody who is finally taking charge of this sector. It is an indictment of what happened in the last five years?

A: I want to really look ahead and see what we need to do.

Q: No lessons from the past--what happened in the five years?

A: Of course, there are always lessons from the past. There were lessons on land acquisitions where the process has been too slow.

Q: Also in the five years you had four different chiefs of NHAI?

A: Yes, we did have different chiefs of NHAI. But then there has to be an element of stability--that is important. In this huge programme, the biggest challenge is capacity building. When you want to 7,000 kilometres a year, we have got to be having 20,000 kilometres of work in progress. To manage 20,000 kilometres of work in progress is a phenomenal job. So, we have got to do capacity building first at home.

Q: The question I am asking is why roads fell off the map of the UPA government because when they appointed you really there was a sense of relief--okay here we have got a man who would do something. But also it almost fell off the map of the government in the last five years.

A: I think we were grappling with many issues in the past like what is going to be the right concession agreement. How much of it should be on PPP, or public-private partnership? How much should be on built-operate-transfer (BoT)? How much should be on engineering-procurement-construction (EPC)?

We must remember that initially when this highway project was undertaken it was all EPC. It was all on piece rate basis and now that's now the best way to do things. So having now been through that curve, we are now on track and we will achieve our targets.

Q: We have had the Chaturvedi Committee coming on the report. You said it could be implemented soon. Are we going to see it implemented soon or we hear that there is some disenchantment with that report in the Planning Commission?

A: Everybody has a view. Everybody is entitled to a view. We have got to look at what's possible. What is desirable is to have a road free but you cannot have it. So between what is desirable and what is feasible you have got to strike a balance.

Q: Do you think the committee strikes a balance?

A: The committee has resolved some of the issues, some remain unresolved, some have to be taken up in the part two section of it, which we'll do but the most immediate thing seems to have been resolved by the committee.

Q: Are you going to implement that?

A: We should be able to do this by the end of September.

Q: One of the criticisms, and I don't necessarily agree with that, is that perhaps it makes it too easy for people to win contracts and that could lead to, in the long-term, a deterioration in the quality of roads. Is there a worry there?

A: No. It has no compromise on quality. We had 40 bids roughly invited last year where there were no bidders. So is it good to have bidding document where you have no bidders? So you say I have got a very good bidding document but I don't get any bidders. So now you must have a transparent process, you must have a process which brings in a large amount of bidders so there is enough competition. That's the way it should be.

  

Trending News

Business News

Galaxy S III to be announced in India today with a tentative price of Rs.42,500
2G spectrum: Policy tweaks helped telcos make a killing at our expense "2G spectrum: Policy tweaks helped telcos make a killing at our expense"

Bandh a success in NDA states, tepid in others

Q4 GDP At 5.3% Industry Growth At 1.9% Vs 7% (YoY)

The latest earning numbers FIRST on CNBC-TV18
Videos

May 30 2012, 23:16

Clash of Spain and ECB worrying investors: Verstrate

- in FII View

May 30 2012, 11:18

Result corner: Ajay Bodke`s top bets from across sectors

- in MARKET OUTLOOK

Interviews

May 31 2012, 11:18 | Source: CNBC-TV18

Tamil Nadu SEB to clear dues in 3 months: PTC India CMD

May 31 2012, 10:31 | Source: CNBC-TV18

Rupee fall has hit profits; to repay FCCB in full: Educomp  

Subscribe to

Moneycontrol Newsletters

Moneycontrol.com offers you a choice of various sectoral and other newsletters for FREE!