NHAI could end up managing Delhi-Gurgaon expressway

PPP dreams turn sour for NHAI, private firm siphoned funds from joint accounts, under-reported revenue

yash

Yash Vardhan Shukla | February 23, 2012



The management of the Delhi-Gurgaon expressway could soon pass into the hands of the national highway authority of India (NHAI) from DS construction private limited which had been managing the expressway under a public-private-partnership project. The road and highways ministry had cancelled the contract allowing DS to operate the stretch after it emerged that the company had siphoned funds from a common account held by the partners. Following the cancellation, which comes into effect on March 1, NHAI may have to take charge of the managing one of the busiest stretch in the Delhi-Jaipur highway. However, if ministry sources are to be believed, DS is keen on working out a plan to settle the disputes with the ministry and NHAI

NHAI is caught in its own bind having agreed to a faulty contract when the project began. The expressway, NHAI’s first PPP project, was touted to be the model for other PPP projects in the pipeline. The money-siphoning issue comes as a setback to the highways authority.

The dispute started when NHAI found out that DS had siphoned off money from a joint bank account (held by NHAI, the promoter banks and DS) and had invested the money in its own projects. Taking cognizance of the matter, NHAI had served a notice a few months back. According to sources, NHAI had earlier served several notices to DS on various issues like roads maintenance, traffic congestion and increase of the premium. These had all been overlooked by its private partner. The sources also say that DS had fudged the account details to keep the siphoning under wraps. It had also grossly underreported the total number of vehicles passing the expressway thereby reducing NHAI’s draw from the toll collected as the revenue sharing terms remained unrevised.

DS, however, has denied all charges, saying that NHAI is being unreasonable on most of the issues.

The traffic on the expressway has increased rapidly over the past few years. Despite the notices from NHAI, DS had done little to manage the traffic. It turned down NHAI’s request to consider adding more lanes to the expressway. The union road and highways minister, C P Joshi has taken a personal interest in the issue as he belongs to Rajasthan and the expressway sits as a bad patch on the Delhi-Jaipur highway.

Comments

 

Other News

Changing weather patterns, climate change responsible for Nepal floods

The interaction between active Western Disturbances, increased atmospheric moisture and the region’s complex topography aswell as global warming are important factors behind intense rainfall in the Himalayas, leading to flash floods in Nepal, according to meteorologists. Nepal

A right she cannot reach

Last summer, the two of us spent several weeks in rural Madhya Pradesh with a non-profit that works on gender justice through women’s self-help groups. We went in with a notebook full of laws. The Protection of Women from Domestic Violence Act. The Dowry Prohibition Act. Free legal aid for every wo

Tier-2 cities lead India’s digital credit push

Digital payments have become a reflex for urban India, but the confidence earned in paying has not yet carried over to borrowing. That is the central finding of `How Urban India Pays Report 2026`, released by Pahlé India Foundation in collaboration with Amazon Pay. Based on a survey of 5,149 consu

India calls for doubling bilateral trade with UK by 2030

Commerce and industry minister Piyush Goyal has called upon businesses in India and the United Kingdom to translate the opportunities created by the India-UK Comprehensive Economic and Trade Agreement (CETA) into expanded trade, investment, partnerships and job creation. Addressing the Bu

Gandhian movement after Gandhi failed: Ram Guha

The Gandhian movement in India, after Gandhi’s death, failed, says Ramachandra Guha, and blames Vinoba Bhave for it. But the movement found new, fertile grounds around the world and succeeded in bringing about a change in South Africa, the US and elsewhere. It is high time it returned home. Of cour

When religion, politics and Bollywood come together

Tavleen Singh, noted journalist and political commentator, has turned to fiction, with her debut novel ‘The Actor’ (HaperCollins India). Set in the near future, it has a superstar, Amit Singh, turning to politics, when the political landscape is dominated by prime minister Guru Gaynendraj

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter