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Implementation of independent regulator for road sector to face delay

26 Mar 2013 Evaluate

With the Planning Commission expressing strong reservations over giving the power to change highway contracts or alter the way projects are implemented, setting up of a regulator for the road sector could be delayed. Planning Commission officials voiced their concerns at the first inter-ministerial meeting held to discuss the setting up of the regulator.

However, officials from road transport and highways ministry are of the view that the sector was facing many contract management issues that are best resolved by an independent regulator, something which was also highlighted by the finance minister in his Budget speech. The road sector is struggling with contractual problems as over Rs 11,000 crore of developers' dues from over 1600 claims are held up in courts, arbitration tribunals and dispute resolutions boards.

The representatives from the finance ministry, law ministry, road ministry and the planning commission were part of the meeting. However, the road ministry will meet concessionaires and lenders on April 10 to seek their views on the proposed regulator.

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