New Delhi
Road Transport and Highways Minister Nitin Gadkari supported a 51% stake for foreign partners in joint ventures for tunnel construction and detailed project reports (DPRs) to improve work quality. The suggestion was made on Tuesday during an event. Gadkari emphasized that a majority stake for foreign partners is needed to attract serious and technically qualified bidders for these projects.
In a lighter remark, Gadkari mentioned that, in some cases, European companies had selected Indian partners who owned unrelated businesses, such as caterer services or beauty parlors, for tunnel construction. This highlighted the need for serious and competent partners in such ventures.
Gadkari stated that foreign partners should hold a 51% stake, while Indian companies should hold the remaining 49% in joint ventures. He believed this arrangement would ensure proper execution of work in building tunnels and DPRs. He also stressed that while technical and financial criteria should be flexible, they should not compromise on quality.
Gadkari also expressed concern about the role of DPR makers in tunnel construction. He mentioned that their lack of oversight had contributed to the increasing number of landslides in India. A permanent solution is needed to address frequent landslides in Uttarakhand and other Himalayan regions, according to Gadkari. Furthermore, he noted that reducing logistics costs to 9% could potentially boost India’s exports by 1.5 times.
