Infrastructure
'NHAI Facing Challenges As Companies Not Ready To Accept New Tech, Form Cartels To Hike Prices,' Says Union Minister Nitin Gadkari
Union Minister Nitin Gadkari.
The National Highways Authority of India (NHAI) is encountering challenges in crafting comprehensive project assessments due to the reluctance of involved companies to embrace novel technologies, stated Union Minister Nitin Gadkari today (17 October).
The Minister for Road Transport and Highways highlighted the government's efforts to promote the adoption of new technologies.
During his address at the 'CRISIL India Infrastructure Conclave 2023', Gadkari revealed that prominent entities within the steel and cement industries are engaging in collusion to artificially inflate prices.
He remarked, "... in the steel industry and cement industry... whenever they get the chance, they form cartels and hike up prices."
Gadkari emphasised the difficulty in rating companies responsible for creating detailed project reports (DPRs).
"The formulation of DPRs presents a significant challenge for NHAI... there is a lack of well-crafted DPRs in any project," expressed Gadkari, known for his candid expressions.
"While developing DPRs, the companies involved are resistant to adopting new technology, innovative approaches, or recent research. Moreover, the quality standards of DPRs are subpar, necessitating additional scope of work at every juncture," he added.
Addressing the issue of elevated logistics costs in India, he highlighted that logistics expenses amount to 14-16 per cent of the overall cost, a contrast to the 8-10 per cent observed in China.
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