Land acquisition biggest dampener for execution of road projects

Last Updated: Sunday, November 28, 2010 - 15:07

New Delhi: It is neither a financial crunch nor inadequacy of manpower or raw materials but land acquisition is the biggest dampener for timely execution of road projects, reveals an Edelweiss Research survey.

"Land acquisition continues to be the single biggest road block hampering developers," Edelweiss Research observed in a recently-published report, prepared after on-site interaction with the developers executing Rs 6,500 crore project.

Lack of clear land titles, lackadaisical attitude of the state government officials and protests over land compensation are the major causes for delay in land acquisition for road projects, the report said.

"Most developers indicate that execution time of projects could have cut by up to six months by timely land acquisition. Similarly, getting timely approvals from railway and forest departments is very difficult due to the cumbersome process involved," it said.

Interestingly, many road developers have now started hiring retired government officials for facilitating coordination within various government departments, the report
said, adding, as a result, many projects are running ahead of schedule.

"We are positively surprised by the fact that resources (manpower, equipment, raw material or finance) were easily available. Even if there is any temporary resource crunch, the entrepreneurial spirit of the contractors ensures that these issues are taken care of," it said.

Two years back a world bank report had also said that on an average, it takes 50 percent more time than scheduled to hand over encumbrance-free land to contractors for national
highway projects.

"However, with most regulatory issues are being sorted out, executing issues on road projects is the principal irritant in improving the pace of road development," the
Edelweiss Research report said.


First Published: Sunday, November 28, 2010 - 15:07

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