Two revenue models proposed for bypass from Kazhakuttam to Karode

July 29, 2014

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

The Hindu

Thiruvananthapuram:

Annuity mode or tolling has been mooted to attract bidders to develop the 43.62-km stretch of the National Highway 66 (NH 66) bypass from Kazhakuttam to Karode into a four-lane carriageway.

The suggestions had been made as at least five companies had shown ‘lack of interest’ to the request for proposal (RFP) floated by the National Highways Authority of India (NHAI) to develop the 26-km stretch from Kazhakuttam to Mukkola initially.

Opposition to toll collection in the State, its non-feasibility, and delay in handing over land for the 17.62-km stretch of the road up to Karode on the Kerala-Tamil Nadu border had been cited as the main reasons for the withdrawal of the companies.

An official of a company who participated in the RFP told The Hindu that the provisions to provide a link from the NH 66 to the proposed Kazhakuttam-Karode bypass had also affected the take off of the project, dragging on for over four decades now.

‘Financial closure’ was perceived difficult as toll volume would be low. Not many multi-axle vehicles moved through the stretch, qualified bidders had informed the NHAI.

Mostly, small cars would take the road and only 30 to 40 per cent of the road capacity would be used once it became a four-lane carriageway, he said.

The Public-Private Partnership Appraisal Committee had given the nod to take up the first 26 km on a public-private partnership (PPP) mode, for Rs.577.95 crore. The total project cost would be Rs.1,170 crore.

The bidders had also sought a revision of the design in view of the 16 road crossings proposed. At Venpalavattom, Chakka, Enchakkal, and Thiruvallom, vehicular underpasses had been mooted.

They had also told the NHAI that banks would give ‘financial closure’ to annuity mode as banks strictly followed RBI lending guidelines.

Land had been acquired for a four-lane stretch and to the extent of 45 metres on the Kazhakuttam-Chakka-Eenchakkal-Kovalam stretch. Fixing the fair value for the land in the Chenkal and Karode Blocks had been the major hurdle in completing land acquisition, sources said.

Source:The Hindu