Gammon, IL&FS in race for Rae Bareli-Jaunpur road project

July 23, 2012

Nine firms, including Gammon, IL&FS, Sadbhav Engineering, are in the race to develop the highway connecting Rae Bareli with Jaunpur.

Rae Bareli, in UP, is the constituency of the UPA chief, Ms Sonia Gandhi.

The Rs 570-crore project requires a National Highways Authority of India Board approval as bidders have sought more annuity than what was internally estimated by the Government.

This significance in the backdrop of recent concerns when there was a bleak response for projects. The length of the project is 166.40 km and the concession period is 17 years including the construction time of 24 months.

The project will be implemented on a build-operate-transfer (BOT)-annuity mode.

The project covers the districts of Rae Bareilly, Pratapgarh and Jaunpur.

PROJECTS UP FOR GRABS

Developers can look forward to bid for some large projects.

The Public Private Partnership Appraisal Committee (PPPAC) has approved the Z-Morh Tunnel in Jammu and Kashmir (Rs 2,773 crore), as also the following road projects: Chakeri-Allahbad (Rs 1,283 crore), Hubli-Hopet (Rs 1,330 crore), Rajsamand-Bhilwara (Rs 668 crore), Handia-Varanasi (Rs 909 crore), Kasgipur-Sitarganj (Rs 606 crore) and Jodhpur-Pali (Rs 333 crore). All the projects will be undertaken on a build-operate-transfer (toll) mode except the J&K project, which will be bid out on BOT (annuity) model. Under the latter, mode, the Government pays a certain amount twice a year to the bid winner to develop and operate the project.

The developers compete on the level of annuity they want during the concession period; and developers do not get to keep the toll revenues.

In BOT-toll mode, the developers get to keep the toll revenues for the concession period.

SOURCE: http://www.thehindubusinessline.com

Written by ITW Editor · Filed Under News

8 Comments on “Gammon, IL&FS in race for Rae Bareli-Jaunpur road project” Post your comment

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