The Finance Minister Finance, Shri P Chidambaram said in his Budget speech in Lok Sabha today that the road construction sector has reached a certain level of maturity. But it faces challenges not envisaged earlier, including financial stress, enhanced construction risk and contract management issues, that are best addressed by an independent authority. Hence, Government has decided to constitute a regulatory authority for the road sector. Bottlenecks stalling road projects have been addressed and 3,000 Kms of road projects in Gujarat, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh will be awarded in the first six months of 2013-14, Shri Chidambaram added.

DSM/UM/R/57

(Release ID :92766)

Regulatory authority for road sector to tackle construction risk and contract management, enabling expedited project awards. Constitution of an independent regulatory authority for the road sector to remove bottlenecks and address financial stress, construction risk and contract management issues; and immediate award of 3,000 kilometres of road projects across specified states within the first six months of 2013-14 to expedite project delivery.