"Nitin Gadkari Highlights NHAI's Challenges in Drafting DPRs"

Nitin Gadkari, the Union Minister for Road Transport and Highways, revealed that the National Highways Authority of India (NHAI) is encountering challenges in the creation of detailed project reports (DPRs) due to a reluctance among companies involved to embrace new technology. Speaking at the 'CRISIL India Infrastructure Conclave 2023,' Gadkari emphasized the government's push for adopting innovative technologies.

He noted that leading players in the steel and cement sectors often engage in cartelization to inflate prices. Gadkari remarked, "...the steel industry and cement industry... whenever they get the chance, they make the cartel and increase the rate."

Nitin Gadkari also highlighted the challenge of rating companies responsible for DPRs, stating, "The preparation of DPRs is a big problem for NHAI... there is no perfect DPR anywhere in any project." He further pointed out that while developing DPRs, the involved companies often resist adopting new technology, innovation, and research. As a result, the standards of DPRs are notably low, leading to increased scope for additional work in various projects.

Addressing the issue of high logistics costs in India, Gadkari mentioned that logistics expenses in India are in the range of 14-16 percent, a figure that significantly surpasses China's logistics costs, which stand at 8-10 percent. The minister's remarks shed light on the need for embracing technological advancements and enhancing the efficiency and effectiveness of project planning in the infrastructure sector.

ET