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7 Highways In Upgrade List

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Anil Sasi BUSINESS STANDARD
Last Updated : Jan 28 2013 | 1:58 AM IST

High-density road corridors to be multi-laned on a build-operate-transfer basis

Seven high-density road corridors would be multi-laned this fiscal under the Rs 48,000 crore build-operate-transfer (BOT) road upgradation scheme announced by Finance Minister Jaswant Singh in the Budget for 2003-04.

The seven sections, totalling 622 km, have been selected from a preliminary list of 23. The 23 national highways were identified by the ministry for project implementation.

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The projects under the road upgradation scheme have attracted 115 bids from domestic and international road construction companies.

The ministry would shortlist 40 contractors from this list to form a 'panel of entrepreneurs', who would then bid for these projects, government officials said.

Overseas players who have submitted expressions of interest include United Engineers Bhd, IJM Bhd, Gamuda Bhd, Meinhardt, Tiong Seng Bhd, GMR, Dutcell, Hohup Bhd, Dhaya Maju Bhd, Maitas Bhd, RBM Bhd, SNC Bhd, Ose Bhd, HCM Bhd, RBH Bhd and Delomite.

The domestic players bidding for the road projects include IL&FS, Srei, Gammon, Gayatri Construction, HCC, L&T, Ircon, Unitech, IDFC, Punj Lloyd, Nagarjuna Construction and Essar.

These BOT projects are not a part of the Rs 58,000-crore National Highways Development Project.

They will be implemented by the ministry of road transport and highways directly and not by the National Highways Authority of India.

The work includes the four-laning of around 10,000 km of high-density national highway corridors over the next 4-5 years.

The scheme not only involves the rehabilitation and upgradation of existing two-lane sections to four-lane divided carriageways, but also the rehabilitation of the existing pavements of major and minor bridges, culverts, road intersections, interchanges and drains.

The government has, however, decided to stagger the payment of 40 per cent of the capital grant for the scheme over a span of 10 years, as against the present practice of giving it upfront to private operators.

Though the payout has been spread over a 10-year period, the funding cap for bidding for the grant component of these projects has been retained at 40 per cent.

The ministry of road transport and highways has already started work on firming up a three-tier official structure for the implementation of these projects.

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First Published: Jun 23 2003 | 12:00 AM IST

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