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Economic Survey 2018: NPAs in highway projects rise to 20% in 2017

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The Economic Survey for 2017-18 presented a sober picture for delayed infrastructure projects as out of 482 road-related projects, only 43 face cost overruns and 74 face time overrun.

The Economic Survey which was tabled on Monday in the Parliament gives a review of the year gone by before the Union Budget for the next financial year is presented. Union Budget for 2018-19 will be presented on February 1.

It was pointed out that out of 1,263 infra related projects during 2017-18, projects worth Rs 3,17,373.9 crore belonged to roads and highways which faced delay in execution due to bottlenecks in obtaining land clearances, public agitation and arbitration-related issues.

“Some of the projects under different phases of National Highway Development Program are delayed mainly due to problems in land acquisition, utility shifting, poor performance of contractors, environment/ forest/wildlife clearances, Road Over Bridge (ROB) & Road Under Bridge (RUB) issue with Railways, public agitations for additional facilities, and arbitration/ contractual disputes with contractors etc,” said the survey.

NPAs stall infra progress

One of the glaring observation made by the Survey pointed out that Roads Sector witnessed increase in Non-Performing Asset (NPA) to 20.3 percent as of September 2017.