"There are close to 1,050 km of NHs that are pending upgradation in the state, although approved. Under NHDP-III itself, there are close to 900 km of NHs that were approved for four-laning about four years ago and these include some strategic linkages along the Indo-Nepal border. But progress on these toll-based projects is very slow, mainly because of an investor-unfriendly atmosphere. The 128-km long Patna-Muzaffarpur section alone has gone to bids twice, but not a single party is interested," a senior official from the Ministry of Shipping, Road Transport & Highways told The Indian Express.

The over 900 km of toll-based four-laned National Highways under NHDP-III include NH-19 and NH-77 linking Patna to Muzaffarpur via Hajipur, besides important links along the Indo-Nepal border between Forbesganj and Jogbani (NH-57A), and Piprakothi-Motihari-Raxaul (NH-28A) which take care of 90 per cent of trade with Nepal. Similarly, the other NHDP-III projects along the Patna-Purnia section on NH-30 and NH-31 are an important link to the North-East.

In Parliament, the Ministry admitted that bids were invited for the Patna-Muzaffarpur section in June 2005 and then again in June 2007 on the basis of the new Model Concession Agreement (MCA). With no takers, the Government is considering changing the financial model to BOT (build-operate-transfer) annuity in which contractors will have to pay the construction cost upfront and the client (NHAI) will return it in pre-decided annuities. As per Government policy, all road projects should be executed on the BOT toll model.

"We will probably have to take the BOT annuity route for this. Basically, there are no takers for a toll-based project in Bihar because contractors feel they may not be able to recover the cost through toll, owing to the political and law and order situation in the state. So, although work on other projects apart from NH-19 and NH-77 are in various stages, it seems quite unlikely that toll-based projects will attract investors there," the official said.

The special task force on Bihar, in its report to the Planning Commission in October 2007, had also pointed out that the state's performance in the road sector has been "constrained due to lack of good contractors and poor response, necessitating re-tendering".

The report said that "local political risk is perceived to be very high in Bihar, which has kept road developers away". It added that the roads in Bihar are "mostly in a bad state" with 45 per cent unpaved, and 70 per cent of the inhabited areas still not connected with motorable roads.

With 27 National Highways criss-crossing it, Bihar has 3,629 km of NH length with the maximum length under NHDP-III that envisages connectivity to places of economic and social significance.