Concerned over not meeting targets while constructing national highways, in a major policy decision the Union cabinet on Wednesday gave free hand to the Ministry of Road Transport and Highways by empowering it to amend the Model Concession Agreement (MCA) and the mode of delivery of projects as per local requirements.

The note stated that it will expedite the process of constructing highways. The ministry is headed by Nitin Gadkari.

According to a cabinet note, against the ambitious target of 9,500 kms of road length for the financial year 2012-13, only 1,116 kms could be awarded during the year by the National Highways Authority of India and 1,436 kms against the target of 4,030 kms for 2013-14 due to various reasons.

This shortfall was primarily attributed to an overall economic slowdown resulting in lack of availability of debt and equity in the market and also to policy issues pertaining to environment and forest clearances, provisions regarding loans to concessionaires and procedural complexities.

The 2009 report of the BK Chaturvedi Committee had also prescribed a framework to decide the mode of delivery and changes in the MCA through an institutional mechanism of the Inter Ministerial Group.

According to recommendations of the Committee, further amendments to the MCA where necessary, and the mode of delivery of any specific project in case the project is found unviable on Build, Operate Transfer (BOT) (Toll) and/or BOT (Annuity), is to be considered, examined and approved by the IMG.

In case there is no unanimity in the IMG, the same was required to be placed before the Empowered Group of Ministers (EGoM) with the approval of the minister for road transport and highways. Since this EGoM was disbanded in 2012, such proposals had to be put up before the Cabinet/Cabinet Committee on Economic Affairs (CCEA) for approval.

The cabinet which met under prime minister Narendra Modi felt that these issues were putting unnecessary burden on the Cabinet as well as Cabinet Committee on Economic Affairs, which was not commensurate with its stature and competence and was only contributing to delays.