 "L&T begins work on Rs 1,293 crore road project in Odisha")
The firm initiated preliminary work such as cleaning the allotted area and shifting electric poles in the 163 Km long Sambalpur-Rourkela state highway last month and will soon start road construction in the area, officials said.
“The firm has already begun road making process and has made sufficient progress in making culverts and other necessary items needed for the road widening project. The final construction of roads will begin very soon,” said Bhat Bhoi, superintending engineer (roads and buildings) of Sambalpur division.
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L &T had signed the concession agreement for the project in November 2013 on build-operate-transfer (BOT) basis, but work order agreement was signed only in July this year. After land acquisition and tree felling, the land was handed over to the company in October last week.
However, nearly 34 hectare forest land and a patch of small land in Jharsuguda district are yet to be handed over to the company, Bhoi added.
As per the work order, L & T IDPL has to complete the road construction process within three years and can collect tolls on it up to 2035. Out of the Rs 1,292.56 crore estimated cost of the project, 35 per cent would be borne by the Centre and the state on a ratio of 20 per cent and 15 per cent respectively. This viability gap funding reduced project cost for L & T by Rs 465.30 crore.
The existing two-lane road between Sambalpur and Rourkela linking National Highway-23 in the north and NH-6 in the south was also developed by L&T in 1997 with financial assistance from Asian Development Bank (ADB).
The widening of the state highway will provide better connectivity to mining areas of Sundargarh and industrial areas of Jharsuguda and Rourkela.
L &T IDPL manages wide range of infrastructure assets worth Rs.45,000 crore comprising 18 road projects, two ports, the Hyderabad Metro rail project and a wind energy plant. Its Sambalpur road widening project is being carried out by Sambalpur-Rourkela Tollways Ltd, a special purpose vehicle formed by the firm.