New Delhi,Union Minister for Road Transport and Highways, Nitin Gadkari, revealed in a written reply to the Rajya Sabha that the total expenditure under Bharatmala Pariyojana Phase I (BPP-I) has reached Rs 4.10 lakh crore as of October 31, 2023. The difference between the actual project cost and the normative cost is attributed to an increase in the cost of raw materials and land acquisition.
Addressing concerns raised by the Comptroller and Auditor General (CAG) regarding the cost escalation in Phase I, Gadkari clarified that there has been no diversion of funds from other schemes. He emphasized that certain BPP-I projects were initially planned under other schemes of the Ministry of Road Transport and Highways (MoRT&H) but were later prioritized under BPP-I.
Gadkari explained that the variance in actual project cost and normative cost is due to factors such as increased raw material costs, heightened land acquisition expenses, construction of high-speed corridors, and the rise in GST rates.
The Bharatmala Pariyojana Phase I, approved by the Cabinet Committee on Economic Affairs (CCEA) in 2017, focuses on developing 34,800 km of National Highway corridors with a total outlay of Rs 5.35 lakh crore. Gadkari clarified that the initial approval was based on normative costs and not detailed project reports (DPRs). Subsequently, DPRs were prepared, and approvals from the competent authority were obtained for each project.
The statement aims to provide transparency on the expenditure and reasons behind the cost variations in one of India’s critical infrastructure development initiatives.
