India approves three road PPP projects

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India approves three road PPP projects

The Cabinet Committee on Economic Affairs of India has approved three road public private partnership (PPP) projects in Maharashtra, Uttar Pradesh and Haryana.

The three toll road PPP projects will be developed in build - operation - transfer (BOT - Toll) mode on design, build, finance, operate and transfer (BOT/DBFOT) basis. The three projects are the following:

- Eight laning of Mukarba Chowk to Panipat section of National Highway - 1 in Delhi and Haryana. The road is a part of Sher Shah Suri Marg (now NH-1) connecting the States of Jammu & Kashmir, Punjab, Himachal Pradesh, Haryana, Chandigarh and Western Uttar Pradesh with Delhi. This road is also important from a strategic/defence point of view as it leads to the borders of the country. The project is covered in the region of Delhi and Haryana and its total length of the road will be approximately 69.84 kms.

The cost is estimated to be Rs22 billion (US$348 million) including cost of land acquisition, resettlement and rehabilitation and other pre-construction activities.

- Six laning of Agra-Etawah section of National Highway - 2 in Uttar Pradesh This work will be under the National Highways Development Project (NHDP) Phase-V. NH-2 connects the important industrial towns of Agra, Firozabad, Mainpuri, Etawah and other towns in the South-Western part of Uttar Pradesh. The project is covered in the region of Agra and Etawah and its total length of the road will be approximately 124.52 kms.

The cost is estimated to be Rs17.9 billion (US$283 million) including cost of land acquisition, resettlement and rehabilitation and other pre-construction activities.

This project was awarded in 2011 to Ramky Infra and the firm achieved financial closure in late 2012, but finally it was cancelled and the government has plans to re-launch the tender process.

- Four laning of the Solapur-Bijapur section of National Highway - 13 in Maharashtra and Karnataka. The main object of the project is to expedite the improvement of infrastructure in Maharashtra and Karnataka and also in reducing the time and cost of travel for traffic, particularly heavy traffic, plying on the Solapur-Bijapur sector. NH-13 connects the districts of Solapur in Maharashtra and Bijapur in Karnataka. The project is covered in the region of Solapur and Bijapur and its total length will be approximately 109.07 kms.

The cost is estimated to be Rs15.4 billion (US$243 million) including cost of land acquisition, resettlement and rehabilitation and other pre-construction activities.

In mid November 2013 Solapur Bijapur Tollway Pvt Ltd (SBTPL), a subsidiary of Sadbhav Engineering Ltd, terminated the concession agreement signed in May 2012 with the National Highway Authority of India (NHAI) to develop this project. NHAI relaunched the tender process for the project in mid June 2014.

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