The government has plans to award highway contracts worth nearly Rs 90,000 crore this financial year, people familiar with developments at the Ministry of Road Transport & Highways revealed.

An official from the ministry said the government would award national highway contracts spanning 7,300 kilometers this financial year, and 52 per cent of the total length (3,800km) would be awarded from April to September.

More than half of the upcoming highway projects would be awarded on engineering procurement contract (EPC) basis, because the public-private partnership (PPP) model failed to produce the desired results last year.

The official claimed that the ministry had already planned a model concession project for EPC highway projects as the government believed that EPC could help revivify the road construction industry.

Last year, the government awarded highway projects spanning just 787 kilometers, only slightly better than the 600 kilometers awarded in times of recession in 2008-09.

Meanwhile, the Ministry of Finance has authorized the Ministry of Road Transport & Highways to clear EPC road and highway projects worth Rs 500 crore. Previously, the transport minister had the authority to clear projects worth up to Rs 300 crore only.