In a bid to minimize time and cost overruns in road projects, the Cabinet Committee on Infrastructure (CCI) on Friday gave approval to the Model EPC (engineering, procurement and construction) Agreement Document for construction of two-lane National Highways Works.

Road Transport and Highways Secretary A. K. Upadhyay announced that the government would construct around 4,000 km of highways under the EPC mode this fiscal year.

To complete the highway projects the government would award a total of thirty contracts. Upadhyay further said that 9,000 km of highways would be constructed under National Highways Development Project (NHDP) in the next two-three years.

Addressing a press conference, he said, “This year 30 projects would go on EPC. We expect to build 3,000-4,000 kms of highways. In another two-three years we will award 9,000 kms under National Highways Development Project (NHDP).”

Under the EPC mode, the contractor will be liable for the maintenance of the highways and bridges for a period of two years and five years, respectively.

Early completion of project will entitle the developer for a bonus, while faults in construction will attract penalties.

The CCI also gave approval for outsourcing operation & maintenance of National Highways to private firms for smooth run of traffic.