New Delhi: The proposed Road Regulatory Authority, to be constituted for easing financial stress, construction risk and contract management in the sector, is likely to be a three-member body with a Chairman and two members.
The Ministry of Road Transport and Highways, which will begin the round of meetings to prepare a fine print on the proposed road regulator soon, is likely to suggest setting up of a three-member body in the form of regulatory authority.
A panel comprising representatives from Road Ministry, Finance Ministry, Law Ministry and Planning Commission will deliberate on the matter and is likely to finalise the proposal in three months.
"The (first) meeting is expected by the end of this month and hopefully the proposal will be finalised in three months," a Road Ministry official said.
Once the proposal is finalised by the panel, a Cabinet note will be prepared and circulated to various ministries for their comments and based on those comments it would be sent to the Cabinet for approval.
"It is a long process and will take time, by the end of this year hopefully we would be able to do it," the official said.
Finance Minister P Chidambaram had announced setting up of a regulator in the road sector during his Budget (2013-14) speech.
He had said that the road construction sector has reached a certain level of maturity but it faces challenges, including financial stress, enhanced construction risk and contract management and that these issues are best addressed by an independent authority.
The key functions of the proposed regulator are likely to include tariff setting, service quality, assessment of concessionaire claims, collection and dissemination of sector information, service-level benchmarks and monitoring compliance of concession agreements.
Road Ministry is of the view that regulation would improve the quality of road projects in the country.