NHAI awards five projects for six-laning

February 23, 2008

Warning: Undefined variable $thumb in /var/www/web/indiantollways.com/wp-content/plugins/digg-digg/include/dd-class.php on line 887

NEW DELHI: The National Highways Authority of India (NHAI) awarded five projects of six laning under National Highway Development Programme phase V aggregating to a length of 882 kilometers worth Rs 10,912 crore.

The Chennai-Tada on National Highway 5 and Chilkaluripet-Vijaywada on National Highway 8 are among first batch of projects which have been awarded on new Model Concession Agreement (MCA) approved by Committee of Infrastructure, Brahma Dutt Secretary Union Surface Transport Ministry told reporters here on Friday.

Other projects are Gurgoan-Kotputli-Jaipur and Surat-Dahisar on National Highway 8 and Panipat-Jalandhar on National Highway 1. Stating that these sections of six-laning are under Golden Quadrilateral (GQ) and North-South Corridor Dutt said the response to the six-laning projects under Build-Operate-Terminate model have so far been tremendous.

“The negative grant has been changed to revenue share model in the new MCA under which the five projects have been awarded. None of the successful bidders have asked for any grant from NHAI,” Dutt said.

Instead of demanding grant, they have all quoted for sharing of revenue with NHAI, he added. For instance Larsen & Tubro-ECC who won the Chennai-Tada project have offered to share 17 per cent of the revenue.

Dutt also pointed out that these projects have been able to attract foreign direct investment. Except for Chennai project whose bid was won by Indian infrastructure major all other successful bidders had equity participation from foreign companies.

Centre had approved seven phases of National Highways Development Programme at an estimated cost Rs 2,42000 crore. Of this under phase V, total 6500 kilometers of existing four-laned National Highways have to be widened to six land through BOT basis following Design Build Finance and Operation (DBFO) model.