The Indian government has provided a welcome reprieve for stalled highway projects grappling with delays due to the unavailability of fly ash, a crucial construction material. In a proactive move, the government has mandated all thermal power plants located within 300 kilometres of these highway projects to offer fly ash, an essential input, free of charge and with immediate effect.
Failed Environmental Mandate
Numerous highway projects spanning thousands of kilometres across the nation have experienced delays due to the inability to access fly ash, as an environmental ministry directive intended to employ fly ash in highway projects situated near coal-based power plants fell short of its objectives.
Ministry of Power Directive
In response to this issue, the Ministry of Power has issued a directive outlining that road and highway projects should be given priority access to available fly ash. Power plants that fail to adhere to this directive will face potential action from the Ministry of Power, with penalty guidelines to be issued soon.
The Role of Fly Ash
Fly ash, a byproduct of coal combustion used to heat boilers in thermal power plants, plays a pivotal role in the construction sector. Beyond its utility as a primary ingredient, fly ash contributes to mitigating air pollution by recycling fine particulate matter. In 2016, the environment ministry established guidelines for the appropriate disposal of fly ash by power plants and its utilisation in nearby road projects.
Prioritising Stuck Projects
An agreement forged between the Ministry of Road Transport and Highways (MoRTH) and the Ministry of Power emphasises the first allocation of fly ash supplies to road and highway projects that received bids between January 2016 and December 2021. This measure aims to prevent further delays for these projects. MoRTH will provide the Ministry of Power with a comprehensive list of highway projects bid out during the specified period.
No Cost Supply and Contractor Responsibility
Under this mandate, fly ash will be supplied at no cost to insulate highway developers from financial burdens. Additionally, power plants will bear the full cost of transporting fly ash via the shortest available route to the project site. If contractors need to make alternative arrangements to source fly ash or other materials, they will be responsible for the associated costs. Contractors will also be required to assess the availability of fly ash at the bid stage through due diligence.
Force Majeure Protection
In cases where fly ash is unavailable, inadequately supplied, or provided slowly, these occurrences will be considered non-political events under the force majeure clause of the agreement. As a result, neither the authority nor the contractor will be able to make claims against each other in such situations. This provision serves to safeguard both parties in the event of unforeseen disruptions in fly ash supply.
