MP seeks loan for road construction

The Madhya Pradesh government has sought a loan of approximately Rs 1,800 crore from the Asian Development Bank for constructing almost 1,900 km of highways.

Bids for construction of the roads will be invited till March 23 and the contract for the project is likely to be awarded to a private partner by June this year.

In 2000 the state government had applied for loan of Rs 1,000 crore from the Asian Development Bank for construction of 400 km of highways. The contract for that project was awarded last year.

"This year we have applied for a sum of Rs 1,800 crore. Of the total 8,000 km highways, we have completed 1,600 km on build-operate-transfer basis and 400 km through ADB funding, while work is going on a 1200-km stretch. Another 100 km will be covered under state budgetary support while a 700-km road length is under construction," a government official said.

The loan will be repaid in 25 years at 5 per cent rate with a five year grace period.

"Although the investment is Rs 70-80 lakh per kilometre, these roads will follow all the Indian Road Congress specifications," the official said.

Another project of 52 km (27 km new alignment) Bhopal bypass road will be constructed through private partnership with an investment of Rs 220 crore.

"The road development corporation is working on the economics of the project so that it could be a toll free road. A feasibility report is being prepared."

The project will be designed in accordance with the master plan of Bhopal. "It would be a four-lane bypass instead of the existing two-lane which is now surrounded by residential complexes.

The corporation has plan to allow residential areas in the vicinity of bypass but traffic will be allowed on service roads only for residents.

At present, a two-lane bypass passes through the town which touches boundaries of some sensitive places like the High Security Animal Disease Lab and the jail.