Also read: NHAI seeks modification from SC of 2 MoEF notices: Sources
In an interview to CNBC-TV18 K Venkatesh, CEO & MD, L&T Infrastructure Development Project (IDPL) said there is an urgent need to get all the ministries aligned. There are some more clearances needed at the local and the state level for which there is a need for better coordination to get the clearances, he added.
Below is the edited transcript of his interview to CNBC-TV18
Q: What is your reading with regards to the entire fiasco that is taking place in the past couple of days? Do you see any possibility or an opportunity in this in terms of rebinding for your company in specific?
A: I won't comment on the specific concession agreements that people have with National Highway Authority of India (NHAI). That's privy to them and each project has its own complexities in terms of clearances. Broadly speaking from the industry perspective there is an urgent need to get all the ministries aligned. There are some more clearances needed at the local and the state level. So, there is an urgent need for better coordination to get the clearances up and running.
I believe that this crisis will catalyse processes to be improved in terms of getting clearances. The way we go about assessing projects I can be very specific is that. In our pre-bid assessment we figure out what kind of clearances are required at the state and at the central level. We also estimate the time that it will take based on our experiences. It is not that we are always right. Sometimes we face challenges. However, then having understood how many desks it has to cross and what are the steps that will be taken we track that very closely. Then we make sure that whatever we have done in our pre-bid assumptions, whether that's falling in line or not and take corrective actions.
It is very difficult to say that whether this is a fiasco or not. It is also providing us a great opportunity to correct some of the processes. One of the solutions that I thought we should look at very seriously is we know these clearances before the bid. It is very clear that these are the clearances that are needed. We also know what it takes to get all these clearances. Therefore what the government can do or consider perhaps is, the end functionality. In an environment clearance one needs a certain amount of reforestation because of the trees that you are going to cut. There is a reforestation guideline which is very clear. So, long as the companies are able to comply with the guidelines through the government and that functionality is achieved I think the clearances can be speeded up.
If the clearances are just not going to happen on any particular project then that should be know upfront. Then that solves the problem much earlier than when it occurs later.
More to come...
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