International Road Federation welcomes setting up of Road Regulatory Authority

Mr K.K.Kapila, Chairman, International Road Federation (IRF) has welcomed setting up of Road Regulatory Authority during the year 2013-14 and announcement of 3000 kms of new road projects in Gujarat , Madhya Pradesh, Utter Pradesh and Maharashtra by Union Finance Minister P.Chidambram in his budget speech 2013-14 today in PArliament.

"The road infrastructure sector was moving very slowly in past few years due to delay in decision making and disputes resulting in heavy loss to contractors in form of blocking of funds as well as paying interest on loans. Setting up of much needed road regulatory authority in 2013-14 to address financial stress, construction risk and contract management in the road sector." Said Mr K.K.Kapila, Chairman, International Road Federation (IRF) in a statement reacting to Union Budget proposals.

"The regulatory authority being planned by the Union Government should have representatives of CVC, CAG, Ministry of Law, Ministry of Road Transport & Highways and one of the Engineering Member of National Highways Authority of India. The group should be Empowered to take decisions across the table, and the decision should be final and binding. It should be non-questionable by any other authority in the Government thereafter. In this way, we will be able to resolve disputes and place the money back in the sector which shall help to push the works. It will give the right signal to the international community that the issues are being resolved." Mr Kapila suggested.

"The government should also do detailed engineering of the project along with land Acquisition and environment clearance formalities before awarding the project to the contractor before the work commences. This will bring an end to the existing disputes which prop up after awarding of the work" he suggested.

"The announcement of 3000 kms of new road projects will give further boost to economy, generate employment and help country build better infrastructure" he added.

Source : Equity Bulls

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