Anxious PMO to soon hold meeting ahead of Abe visit to resolve issues with JICA
The ambitious Rs 15,000 crore North East connectivity project is struggling to take off even one year after an agreement between India and Japan to jointly work on it for quickly transforming the region into a manufacturing hub with the help of better road infrastructure.
India had chosen Japan as a partner in the project due to the latter's renowned expertise in building durable and environmentally sustainable roads on tough mountainous terrain, like those found in the North East. The government also wanted Japanese help due to their prowess in manufacturing.
The first phase of the project is estimated to cost around Rs 5,000 crore for improving two highways (380 km of NH54 in Mizoram and 50 km of NH51 in Meghalaya) and an additional Rs 1,700 crore for activities including compensation for land acquisition. About 500 hectares is to be acquired for the first phase.
This is expected to be funded (through a loan at a concessional rate) by the Japanese government-owned development agency -- Japan International Cooperation Agency (JICA). The total length of road involved in the whole project is 1,200 km and is to be taken up over three phases.
Several hurdles
However, currently the project faces several hurdles.
Official sources told The Hindu that these include differences between JICA and the National Highways and Infrastructure Development Corporation (NHIDCL) on issues such as the various costs involved in the project, the technology that is to be used in building roads. There are also differences between the two on the manner in which environment and social impact assessments are carried out.
NHIDCL is a wholly owned company of the Ministry of Road Transport & Highways (MORTH) and is the project implementing agency.
Also, it is learnt that local stakeholders such as Khasi Hills Autonomous District Council in Meghalaya are yet to give their 'no objection certificates'.
Meetings before Abe visit
With the Japanese Prime Minister Shinzo Abe slated to visit India later next month, the Prime Minister's Office (PMO) has sought a status report of the project and will shortly hold an inter-ministerial meeting on it to expeditiously resolve all the outstanding issues.
Sources in the commerce and industry ministry said despite repeated reminders, JICA is yet to submit the final report of a feasibility study for the project. JICA had in September 2014 agreed to submit the report by September-end 2015.
The commerce and industry ministry is the nodal agency in the Central government for matters relating to JICA and also houses the 'Japan Plus' cell for expediting clearances for Japanese investments in India.
While JICA did not respond to an email sent by The Hindu, NHIDCL officials denied charges of differences with JICA. They expressed confidence in making enough progress so as to sign an agreement with JICA for the Rs 5,000 crore-loan, during Abe's visit.
The sources, however, said the industry ministry has objections regarding India asking Japan (JICA, in this case) for a soft loan as high as Rs 5,000 crore just for the first phase of the project, and wants this as well as the estimated compensation costs of Rs 1,700 crore to be rationalised.
In this regard, the industry ministry is expected to soon call a meeting of the concerned agencies including the Ministry of Development of North Eastern Region, finance ministry, the MORTH, JICA and NHIDCL. Industry ministry is also keen to ensure that the plan -- to develop the region into a manufacturing hub with Japanese help -- is not dropped.
The sources added that these developments are set to figure in the discussions to be held by a senior Japanese Ministry of Economy, Trade and Industry (METI) official starting November 16, as part of preparations for the Japanese premier's trip to India.
The METI official is set to call upon senior officials in the PMO and others in various ministries as well as the chief secretaries of the concerned states to discuss the unresolved issues.
JICA'S concerns
Sources in one of the many Japanese agencies said while Japan is insisting on a full-scale Environmental Impact Assessment (EIA) even for improvement of existing single-lane/two-lane highways such as the ones in the North East, NHIDCL and MORTH have referred to a Central government notification, according to which easier clearance can be given for road widening in border areas such as the North East.
They said Japan also wants NHIDCL to adopt the latest 'slope protection technique and methods to balance cut & fill volumes' for greater durability of the road and to make the construction environmentally sustainable. JICA had asked NHIDCL to upgrade their Detailed Project Reports (DPR) incorporating these.
Though NHIDCL has agreed to adopt these techniques, it wants the costs involved in it to be rationalised. Negotiations are continuing regarding costs, they said.
NHIDCL sources said the company is almost ready to seek sanction for all the phases from the competent authorities.
The second phase comprises improvement of NH 127B, NH40, NH53 and NH 39 in the region as well as construction of two bridges, while the third phase comprises improvement in NH62, NH 102A and NH 44 besides construction of two more bridges. However, JICA is reluctant to offer assistance in outline design and construction of these projects citing the difficulties in securing the safety of their working team, the sources said. (ENDS)
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