EPCinrOadsWhat’swrongwithEPC.pdfVIP

FeatureFeature EPC in rOads What’s wrong with EPC? If you thought only BOT projects were in trouble, think again. The faltering roads sector is increasingly dependent on sentiment, and this dependence is clear from the recent negativity that has crept even into EPC. Bringing back investor sentiment should now be supreme. This as damage control, the model should foster innovation, sustainability and a genuine sense of ownership, writes Sumantra Das. ndian road sector, hailed as the lifeline of India’s went so worst that NHAI told the highway ministry that infrastructure growth story, is at crossroads as road it won’t be able to award any more projects on toll mode Idevelopers are looking ways to exit route from the during 2013-14 if the prevailing conditions don’t projects than looking for any further investment. A improve. According to a recent newspaper report, the majority of road developers those are aggressively went nodal authority of the road sector has informed the for bidding in the golden ages between 2007 and 2011, ministry that 33 projects covering around 3,500 km now find it difficult to sustain the business as the sector awarded during the past two financial years are yet to finds itself up against post-bidding issues, including a take off mainly because dearth of finance, equity, threat in projects on PPP mode. Issues range from clearances and land availability. Moreover, 17 BOT subdued funding, optimistic traffic estimates and delayed (toll) and three BOT (annuity) projects did not get any execution