NHs to be handed to another agency? State PWD stands to lose a lot
Source: The Sangai Express

Imphal, June 25 2018: It would do enormous harm to the State PWD if the sections of National Highways passing through Manipur which are under its care are handed over to any other agency.

It has been already reported that most National Highways including those sections which are under the care of PWD would be incorporated within the Government of India's Bharat Mala Project.

Once a National Highway or any of its section has been incorporated within Bharat Mala Project, it would be handed over to NHIDCL, sources informed.

As per the guidelines of the Ministry of Road Transport and Highways (MoRTH), Bharat Mala Projects should be executed in EPC and FIDIC modes.

The State PWD is well qualified in executing projects in EPC and FEDIC modes and the department is currently executing two projects in EPC mode, said the sources.

Even if any National Highway has been incorporated within Bharat Mala Project, it does not necessarily mean the State concerned would be relieved of it.

In some States, National Highways which have been included in the Bharat Mala Project are still kept under care of the respective State Governments.

In case National Highway sections which are under the care of PWD are handed over to other agencies just because they have been taken within Bharat Mala Project, it would be a big loss for Manipur considering its limited resources.

If PWD is kept in charge of National Highways or any of its sections, it would get 9 per cent as agency charge.

Moreover, if a local contractor is selected for executing National Highway projects, the State would receive 15 per cent and 30 per cent as contractor's profit and labour component respectively, informed the sources.

For instance, if MoRTH sanctions Rs 1000 crore for a National Highway handled by PWD and if the same project is executed by a local contractor, around Rs 540 crore would remain with the State.

During 2017-18, the State PWD was able to earn around Rs 14.5 crore from executing National Highway projects.

This amount was accrued to the State's revenue.

During the current year, National Highway projects amounting to Rs 300 crore are being executed and PWD is expecting Rs 32 crore as agency charge.

Out of the total money spent by the State Government in a month in paying salaries to its employees, the Government of India pays around Rs 220 crore.

If the National Highway sections incorporated within Bharat Mala Project are retained under PWD, the department would be able to contribute around Rs 800 crore every four months to the State's revenue, the sources said.

As such, the State Government needs to exert political pressure on the Centre to ensure that sections of National Highways passing through Manipur which are under PWD are retained under the department even if they have been incorporated within Bharat Mala Project, added the sources.

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