New Delhi, July 12 (IANS) A major Chinese construction corporation has expressed keen interest in India’s highway development projects, the government on Tuesday disclosed.
The disclosure by the Ministry of Road Transport and Highways came after a high-level delegation from the China Railway Construction Corporation Limited (CRCC) met officials from the National Highways Authority of India (NHAI) here.
According to the ministry, NHAI Chairman Raghav Chandra apprised the CRCC delegation about the various projects lined up with the state-run roadways developer like the upgradation of two-lane highways and various other special expressways.
Further, the state-run enterprise informed them about other connectivity projects for construction of by-passes and ring roads around major cities which will contribute to the “Smart Cities Projects”.
The Chinese delegation was also told about the recent policy changes in the sector for implementing the highways construction programme, especially the introduction of the hybrid annuity model.
“CRCC expressed keen interest to participate in the upcoming projects of NHAI under both engineering, procurement and construction (EPC) and hybrid annuity model,” the statement said.
“The CRCC team had an in depth discussion on various aspects of such participation in NHAI projects.”
Besides, the visiting delegation enquired about the acceptance of the Chinese technical standards in road construction.
“Their queries mostly pertained to finding financial solutions with requisite IRR (internal rate of return), addressing the upward price fluctuations during construction in essential materials during the period of construction under the EPC and hybrid annuity model,” the statement further said.
“The Chinese delegates were keen on knowing about any restrictions on sources of procurement from abroad, import certifications requirements, whether US dollars could be the currency of repayment (as annuity), availability of repayment guarantee and proof of capacity of the client (NHAI) to repay to provide comfort to their lenders.”
In addition, the NHAI officials sought details of Chinese policies and models of concessions and funding solutions.
“The meeting was successful as both parties assured to share the details of policies, procedures and models of constructions which would enrich and benefit further the Indian experience and expertise in the sector,” the statement added.
Currently, CRCC is one of world’s largest integrated engineering contractor and construction group with over $100 billion of revenue and a market capitalisation of around $250 billion.
Apart from being the major contributor to China’s high-speed, normal, alpine and plateau railways, it has also provided survey and design services for highways, urban rail transit, real estates and other infrastructure projects.
The Chinese firm boasts to be the leader in globally advanced cutting-edge technologies and having expertise in not only the design and construction of railways, but also long span bridges, highways and large-section tunnels.