New Delhi,Sep 23 (): India has stonewalled China’s plans to get Rs 9000 crore projects to build highways without any bids and using its own machinery, labour and material.
China wants to invest in infrastructure in the EPC mode known as engineering, construction, procurement by India through NHAI who funds it. Private companies who take the work act only as sources for labour. China wants this to change where they will take up work without any tenders and will not restrict it to labour but take care of engineering, construction which will be using materials from their country.
China has said it will invest in these projects on this condition. Narendra Modi and Nitin Gadkari had a meeting and decided that India will not change the existing policy as it wants China to take the PPP in which they fund and build it and then take their investments from toll and later give it back to India.
India has sanctioned Rs 9126 crores for highways in AP, Odisha, Punjab and Haryana totalling 890 kms. India was open to China who funds as per EPC norms but the crunch came as it wanted Chinese labour also which a job contractor has to source workers from within the country. This meant that an influx of labour across the border and lose an opportunity for India to give employment. The Federation of National highway builders has already raised a protest.
The fact remains that India is not getting much response for its PPP model for highway building. As the stress is now on infrastructure building, it is important for Narendra Modi to effect a certain change in the rules.
China is facing a drop in infrastructure building industry and it needs such big buck projects. Steel manufacturing has seen a drop in China due to which many manufacturers are in a problem.
Steel manufacturers in India have complained that China has dumped Rs 45 crore worth of steel bars in Indian ports falsely certified as alloyed bars so that manufacturers back home can get 13% cut in excise duties. These bars are less priced than Indian products.