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The government intends to plan a threshold of ₹5 lakh per km for awarding detailed project report (DPR) contracts to road consultants, as against the average of ₹1 lakh per km, as it moves from least cost to fixed cost model, according to a senior government official.
The move is aimed at improving the quality of DPRs to bring them on a par with international standards and avoiding project delays, the official told ET on condition of anonymity. The road transport and highways ministry has sought views from stakeholders on the proposed changes and will firm up new rules for DPRs soon, according to people in the know.
"The need for a minimum br price, below which we will not award contracts, has arisen as bidders quote bare minimum price to get the contract but eventually make poor quality DPRs which leads to project delays and cost overrun," the official said.
The br price has been arrived at after taking into consideration global norms on salaries of good quality human resources and related factors, the official said, adding, "While a final decision is yet to be taken, we hope keeping a threshold will fetch us good quality DPRs."
The government believes the delay in project execution is because of inadequacy and poor quality in the project preparation stage which in turn leads to modification in the scope of work, variation and time and cost overrun. While the fivefold cost escalation in DPRs, if agreed upon, would mean an additional burden on the exchequer, the government believes the benefits of quality DPRs and the savings made thereof will outweigh the additional cost burden.
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