Road ministry decides to double ‘defect liability period’ under EPC contracts to 10 years: Gadkari
PTI, Oct 23, 2024, 6:27 PM IST
Union minister Nitin Gadkari (Credit: PTI / File)
New Delhi: Union minister Nitin Gadkari on Wednesday said the government has decided to double the ‘defect liability period’ to 10 years for contractors of engineering, procurement and construction (EPC) projects.
Currently, under EPC projects, the responsibility for maintenance of national highways lies with the government after the defect liability period (5 years) is over.
“The quality of roads built under EPC mode is not good. The defect liability period under EPC mode is 5 years… and within 3 years, there are lots of problems on roads,” Gadkari said at an event here.
The road transport and highways minister noted that the roads built under BOT (build-operate-transfer) or HAM (Hybrid Annuity Model) mode are in good condition because the responsibility of maintenance of roads lies with the contractor and he has to pay the price.
“So now we have taken a decision, any road (built) under EPC mode, we will increase the defect liability period to 10 years from 5 years,” he said.
The minister noted that increasing the defect liability period for contractors will force them to make good quality roads.
EPC projects are the ones where the government pumps in money, while the private partners only provide engineering construction assistance.
The HAM model of road construction is where the government partially funds the construction of national highways and BOT or build-operate-transfer is where the construction risk is borne by the private concessionaire with a concession period of 20-30 years.
National Highways Authority of India (NHAI) and National Highways and Infrastructure Development Corporation Ltd (NHIDCL) are mainly responsible for the construction of National Highways and Expressways in the country. Maintenance of National Highways is financed by the Central Road Infrastructure Fund.
Gadkari also stressed on the need for increasing exports and decreasing imports.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Consumer watchdog CCPA orders Ola to offer refund choices, provide auto ride receipts
Will explore electric vehicle export opportunities: Hyundai Motor India
Gadkari launches Humsafar Policy to provide essential facilities on national highways
Ola Electric Mobility stock declines over 6% after CCPA notice on misleading ads
Carmakers expect festive period to bring in robust sales, improve overall buyer sentiment
MUST WATCH
Latest Additions
Mangaluru: Baba Ramdev arrives to attend Oriental Studies Conference in Udupi
Udupi: Baba Ramdev to conduct Yoga camp during Oriental Studies Conference from Oct 24-26
MVA allies to contest 85 seats each in Maharashtra polls, talks still on
Priyanka Gandhi files nomination for maiden electoral battle from Wayanad after massive roadshow
BRICS nations agree to boost trade, financial settlement in local currencies
Thanks for visiting Udayavani
You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.