<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[<p>Although the restructuring of the National Highway Authority (NHAI) has moved so far at a snail's pace, companies in the sector have sought one more improvement. They have suggested that a new post, member (land acquisition), be created.<br><br>Land acquisition, companies say, is the most difficult problem in executing projects. "Land acquisition and permissions required from railway authorities are the single-biggest stumbling block we are facing at present," says T.S. Venkatesan, vice-president, developmental projects (roads and bridges) for L&T. "That's why the industry is keen that a member be entrusted only with this single task."<br><br>The exercise to restructure the NHAI has been restarted by roads and highways minister C.P. Joshi, who took charge this January. NHAI is supposed to have six full-time members, but for many months now, three of those posts have been lying vacant.<br><br>The exercise to choose a new full-time chairman has also been in limbo, primarily due to differences between the minister and the Prime Minister's Office. While the latter wants a bureaucrat be appointed to the position, Joshi is understood to be keen on a technical person as the chief, even if he is not part of the Indian Administrative Services. He is open to inviting applications from experts in the the private sector too. <br><br>In the absence of a consensus, the roads secretary is currently acting as the NHAI chairman, as an additional charge. This is a situation that the companies are not too happy with as a full-time chairman is expected to facilitate quicker decision making. The NHAI is expected to grant projects worth about Rs 80,000 crore this year alone.<br><br>In fact, in the absence of a full-time chairman and several members, the process of handing out contracts, opening of bids and handing out letters of intent has taken something of a beating in the past six months. The Prime Minister, however, has said last week that a new chairman will be appointed within three months.<br><br>The Cabinet had, in July 2007, cleared a number of proposals to restructure NHAI, whose scope and mandate has grown at a rapid pace due to the increasing number of National Highway Development Projects. The number of full-time board members was increased from five to six, and part-time members from four to six. These members would be from the non-government sector — one from IITs/ IIMs and the other from financial institutions.<br><br>One important change welcomed by the companies was making the process of bidding more transparent. NHAI has now moved to annual prequalification of road developers for highway projects that are to be developed through the PPP mode. <br><br>Earlier, companies had to pre-qualify for each and every project. This meant submitting documents, running to 2,500 to 3,000 pages, all of which cost time and money. Also, many companies often felt that they were unfairly disqualified at pre-qualification stage in cases where the bid process seemed "less than transparent" and where it seemed that the "winning bid has been pre-decided".<br><br>In other words, NHAI officials will no longer be able to reject applications on flimsy grounds during the qualification stage. Companies believe that this will reduce the time NHAI takes to award projects.<br><br>(This story was published in Businessworld Issue Dated 01-08-2011)<br><br></p>