Nitin Gadkari Reveals How "Big Players Form Cartels" To Hamper Road Projects

The National Highways Authority of India (NHAI) is facing difficulties in the preparation of detailed project reports, as companies concerned are not ready to accept new technology, union minister Nitin Gadkari said today.

The road transport and highways minister said that the government is encouraging the use of new technologies.

Addressing the 'CRISIL India Infrastructure Conclave 2023', he said big players in the steel and cement industry are indulging in cartelisation to jack-up prices.

"... the steel industry and cement industry... whenever they get the chance, they make the cartel and increase the rate," he said.

According to Nitin Gadkari, rating of companies who make DPRs is a big challenge.

"The preparation of DPRs is a big problem for NHAI... there is no perfect DPR anywhere in any project," Mr Gadkari, who is known for his frank views, said.

"While making DPR, they (companies engaged in DPR making) are not ready to accept new technology, new innovation, new research and even the standard of DPRs are so low that everywhere (there is) additional scope of work," he said.

Talking about high logistics costs in India, he pointed out that in India, logistics cost is 14-16 per cent, compared to 8-10 per cent in China.
 

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