NEW DELHI: The expenditure department has asked the highways ministry to treat highway projects as one entity, instead of getting approvals in small lots, something that had become the norm in recent years.

Sources said barely weeks back another communication from economic affairs department to the highways ministry had said that individual packages of a stretch can be treated as a stand alone project and the ministry could get them appraised and approved.

But in a recent letter addressed to road transport and highway secretary Sanjeev Ranjan, expenditure secretary T V Somnathan has cited three instances, where projects have been sub-divided into multiple packages for appraisal by standing finance committee (SFC), an inter-ministerial panel. These are for the construction of eight-lane Vododara-Mumbai Expressway (eight packages), four-lane of Ahmedabad-Dholera greenfield expressway (four packages) and construction of six-lane Vijayawada Bypass (two packages). While the cost of Vododara-Mumbai expressway cost is Rs 16,086 crore, the Ahemadabad-Dholera expressway would cost around Rs 4,335 crore, including the cost of land.

These projects are being taken under public private partnership (PPP) mode and all these are part of the Bharatmala programme, which has been approved by the cabinet. Under this mechanism, the SFC of road transport ministry is entitled to appraise and approve PPP projects costing up to Rs 2,000 cr (excluding land cost). The highways ministry has been sub-dividing projects into packages to fit them into the cap set by the government. Projects costing beyond Rs 2,000 crore need to be appraised by PPP Appraisal Committee and approved by the cabinet.

Somanathan has written to Ranjan saying, “As you are aware as per the extant norms all packages of a particular project being appraised simultaneously should be by an appropriate appraising authority considering the total cost of the project.” While pointing out that this practice is “not in consonance” with the finance ministry’s guidelines, he has sought “necessary direction” to the officers concerned to comply with the guidelines.

“The entire Bharatmala programme was approved to be implemented on the lines of Golden Quadrilateral project with delegation of power to appraise and approve projects for quick implementation. Now if we go back to old system, it will take time to bid out works. We hope a way out will be found soon,” said an official.

