Big steel, cement players indulging in cartelisation: Nitin Gadkari

Union minister of road transport and highways, Nitin Gadkari on Tuesday said that the National Highways Authority of India (NHAI) is facing difficulties in the preparation of detailed project reports (DPR), as companies concerned are not ready to accept new technology.

He further added that the government is encouraging the use of new technologies.

The union minister said big players in the steel and cement industry are indulging in cartelisation to jack-up prices. These remarks came while addressing the 'CRISIL India Infrastructure Conclave 2023'.  

"... the steel industry and cement industry... whenever they get the chance, they make the cartel and increase the rate," he said, as per news agency PTI.

Gadkari also stated that rating of companies who make DPRs is a big challenge.

"The preparation of DPRs is a big problem for NHAI... there is no perfect DPR anywhere in any project," Gadkari said.

"While making DPR, they (companies engaged in DPR making) are not ready to accept new technology, new innovation, new research and even the standard of DPRs are so low that everywhere (there is) additional scope of work," he said.

Speaking about high logistics costs in India, he pointed out that in India, logistics cost is 14-16 per cent, compared to 8-10 percent in China.

He said that the mission is to reduce India's logistics cost to single digit by 2024 end.

The minister also informed that the government is planning to start ethanol pumps in the country.

(With inputs from PTI)

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