The Cabinet Committee on Economic Affairs (CCEA) has delegated powers to the Highways Ministry to approve all road projects of up to Rs 500 crore irrespective of the mode of implementation.
At present, there is dichotomy in the approval process followed for award of projects of up to Rs 500 crore.
For those projects which were implemented on an engineering procurement contract (EPC) basis, which are entirely funded by the Government, the Highways Ministry had power to approve projects of up to Rs 500 crore.
But for projects implemented on public-private partnership basis, which involved investments from the private sector, the Highways Ministry did not have similar powers.
According to an official release, “At present, projects of Rs 500 crore or above require investment approval of the Cabinet Committee on Economic Affairs (CCEA) but projects below Rs 500 crore have varying appraisal and approval levels, depending on the source of funding and mode of implementation of projects.”
The CCEA approved the proposal for a change in the delegation of powers for appraisal and approval of National Highways projects. This will simplify the appraisal and approval of the National Highway projects, it added.