On NHAI bidding norms & NH-61 bandh

With reference to NH-61 bandh by local Contractors of Wokha and Tseminyu Divisions I would like to share a few points on the subject. Most of us are opposed to organizing bandhs when the issue is not affecting you directly. But when it affects us personally we begin to change our opinion. Nevertheless, most of the time indifferent attitudes shown by concerned authorities to solve problems give rise to such situations.

As we take NH-61 (220 km in Nagaland-20 km in Assam) we come across several different districts and divisions in the state. With a special mention on the present scenario we need to clarify to the public that it is approved by Road Transport & Highways Ministry but there is objection to the latest bidding norms by Planning Commission, and is still pending with Union Finance ministry.

In NHAI guideline No. 06: In exceptional cases, the Central govt. may assign the function of IA (implementing agency) to the State PWD.

The Economic Times 02 August. 2010

“The Union Finance Ministry which houses the PPPAC (public private partnership Appraisal Committee) & the Committee on infrastructure has asked the country’s apex highways body NHAI, to revert to the previous regime of awarding contracts”.

Gajendra Haldea, advisor to deputy chairman, planning commission to roads secretary Brahm Dutt with copies to finance Secretary Ashok Chawla expressing his objections. The letter said these changes “will create more restrictive environment, reduce competition & enable cartelization”.

The letter issued with approval of Finance Minister Pranab Mukherjee objects to NHAI amendment, which entails increasing financial eligibility criteria for bidding (Rs 500 Cr or 20% of the contract value, whichever is less) , said this will benefit wealthier and foreign companies.

Recently, the Planning Commission released an “issue paper” citing NHAI would go bankrupt in three years if it continues with the new bidding norms.

Even on eligibility criteria for sub-contractors the Finance ministry along with Planning Commission agrees it will unnecessarily burden road developers. Sub-contractors are those who build roads for contractors which have won bids. NHAI had done this to check low quality work.

The question now is:

1. Will the government go ahead with the bidding despite protests? If so, it might get caught up in a legal wrangle.

2. If not, get approval from RT &Highways Ministry (citing an exceptional case & Legislative Assembly resolutions), revert to the earlier eligibility norms and things go back to normal.

3. A few years back the State government mooted the idea of handing over NH-61 to BRO (Border Roads Organization). In service Engineers’ Association threatened to agitate. Despite other reasons, the main point raised by the Engineers’ Association was depriving local contractors/businessman of work. The government relented.

4. What I wish to highlight is if that is the reason for not handing over NH-61 to BRO back then what is the difference today in the latest Hi-fi method of bidding for the said tender where only corporate and corporate like establishments would qualify?

5. If the Government still insists on such high profile method of tendering of contract works on National Highways then public of the affected areas should insist on handing over NH-61 to BRO which is the most qualified organization for road building in all frontier areas from Kohima to Kashmir. There is no NHAI restriction on this part of handing over to BRO.

Frankly, Technocrats and Bureaucrats may not be expected to have much concern for the public. That’s understood, but Ministers & MLAs’ are obligated to their people. Passing a-Legislative Assembly resolution to that effect and not implementing will not go well with the public. This particular subject is addressed to the Ministers & MLAs’ concerned and Deptt. of Roads & Bridges.

Meanwhile, our Sate government should tread carefully & take a wise decision whichever will benefit the people of our state. We have noticed in the past few years that DAN government is a development oriented government. Consequently, declaring 2010 as “Year of Entrepreneur” should not turn out to be simply an idea rolling out more unemployment but action as well for local entrepreneurs.

Alo Kent. R
Opposite SP office,
Dimapur