Govt to continue to bear risks in highway projects some more time
The government will continue to bear risks in highway projects some more time as it plans to award highway projects via the conventional engineering procurement and construction (EPC) mode at the moment.
“We are switching to EPC (engineering procurement and construction) mode for some time (for highway construction),” road transport and highways minister Nitin Gadkari told Mint.
EPC model is generally considered to be risk-free as the cost—procuring raw material and construction–is borne by the government and the private sector’s participation is minimum as the financing and the revenue risk is undertaken by the government.
