Under the new change, the annual turnover requirement will be reduced to 15%. It used to be 20% earlier. That is, the turnover of the participating company should be 15% as compared to the estimated cost of the project.
Last week, the Ministry relaxed the rules of the Hybrid Annuity Mode (HAM) project, increasing competition in the titanium and this will lead to a quick completion of the projects.
Soon local companies, especially new companies in the country, may find it easier to participate in road projects. This is because the government is preparing to relax the road project rules under the Self-Reliant India Campaign. This will make it easier for these companies to participate in road projects.
There will be a change in the eligibility criterion
According to the information, the biggest change that is going to happen in this whole rule, there are rules of eligibility criterion. These rules will be made easier for Engineering Procurement and Construction (EPC). In this, the criterion of financial and technical will also be made easier. According to sources, the central government has not eased the financial and technical criterion for infrastructure projects for a long time. This prevented local companies from participating in the road project. Now it is being simplified.
There will be a reduction in terms of annual turnover
Under the new change, the annual turnover requirement will be reduced to 15%. It used to be 20% earlier. That is, the turnover should be 15% as compared to the estimated cost of the project. Similarly, the capital cost is also expected to be reduced to 75% of the estimated cost. Prior to this, the financial capacity criteria was one to one. Because of this, there were few contractors who were selected for such projects. In such a situation, many projects took a long time to complete as there was no competition.
Nitin Gadkari will announce
It is being told that Road Transport and Highway Minister Nitin Gadkari can announce it in a few days. Similarly, the Ministry has also reduced the technical experience in it. It has been reduced in proportion to the cost of the project from 10% to 5%. For example, if a company has experience of projects worth 100 crores, then its 50 crores project was also considered appropriate. Now it will be a condition of 25 crores rupees.
Small companies will be involved in EPC project
Due to the ease of the proposed rules, small companies will now be able to join the EPC project. It is believed to promote the program of a fully self-reliant India. Last week, the ministry relaxed the rules for the hybrid annuity mode project. The ministry has now scrapped the experience for the 200-meter tunnel (cave).