Setback to highway pact with Malaysia

A proposal for an agreement between India and Malaysia on highway projects has hit a roadblock with many Cabinet members opposing it over exit clause that allows developers to leave the project, forcing the Government to refer the matter to a group of ministers.

Road Transport and Highways Minister Kamal Nath's proposal for a government-to-government engagement with Malaysia for detailed project reports, technical expertise and feasibility studies for expressways and other high projects met with opposition by several ministers over the exit clause it offers to the Malaysian companies. The ministry, sources said, had plans to collaborate with the Malaysia's Construction Industry Development Board.

Intervening in the matter, Prime Minister Manmohan Singh referred the matter on Thursday to a group of ministers. The Government recently told the Lok Sabha that collaboration for highways between India and Malaysia were also on cards and Malaysian agencies expressed their interest to collaborate on highway related projects on an inter- government basis with India.

The Government plans to build 18,637 km of expressways in three phases by 2022 and these could be a focus-area for the collaboration. Nath had recently visited Malaysia to explore the possibilities. However, no agreement could be signed so far.

- Asian Tribune -