In what can be termed as a success of the public-private partnership (PPP) initiative in the highway sector, nine projects under various phases of the National Highway Development Programme (NHDP) have generated funds to the tune of Rs 1,368 crore between January 2006 and December 2006. These funds have been received by the National Highway Authority of India (NHAI) for projects falling under the second, third and fifth phases of the NHDP. According to the highways ministry sources, the concessionaires paid money in advance to the NHAI to bag the projects. This mostly happens for stretches where concessionaires foresee good returns through traffic density. As per rules, the government pays 40 per cent grant to concessionaires for highway projects, subject to competitive bidding. However, in certain projects (normally those with good traffic density), if a concessionaire feels he can recover his costs well within the concession period, he offers money in advance to NHAI instead of seeking grant. It also shows the concessionaire's confidence in the viability of the project.During the whole of last year, the NHAI's rate of issuing contracts was quite poor. In fact, seven of these nine projects were awarded in 2005, when NHAI had issued a large number of contracts. Two of these projects were awarded in December 2006 by the government. In such a scenario, the concessionaires' increased enthusiasm, shown through upfront payment, has indeed come as a shot in the arm for NHAI.Of these nine projects, five fall under phase II of the NHDP. The NHAI has received Rs 96 crore for the Rs 270 crore Panipat elevated highway work from L&T Ltd, while for the Rs 267 crore Farukhanagar-Kottakata stretch, it has received Rs 70 crore upfront from the consortium of GMR Energy Ltd and GMR Infrastructure Ltd. For the Rs 372 crore stretch between Krishnagiri and Thopurghat, it has received Rs 140 crore upfront from L&T Krishnagiri Thopurghat Toll Road Pvt Ltd, while for the Rs 472 crore Indore-Khalghat stretch, it has got Rs 6 crore upfront from the Oriental Structural Engineers Pvt Ltd-Delhi Brass consortium. For the Rs 195 crore Agra-Bharatpur stretch, NHAI has received Rs 3 crore upfront from the aforementioned consortium.NHDP phase III, which involves four-laning of 4,000 km of national highways, has two projects for which the NHAI has received the money upfront. For the Guna bypass project worth Rs 46 crore, it has received Rs 19 crore from Guna Infrastructure Ltd. For the Rs 556 crore Dhule-Pimpalgaon stretch, NHAI has received Rs 59 crore upfront from IRCON-Soma consortium.In December 2006, the NHAI received Rs 504 crore upfront for the Bharuch-Surat section. This is the highest ever amount it has received in advance for any project. The concessionaire is IDAA Infrastructure Pvt Ltd. The project for which NHAI received the second highest amount upfront was the 83 km long Vadodara-Bharuch section on NH-8, worth Rs 660 crore (also under phase V), awarded to Larson & Toubro Vadodara Bharuch Tollway Ltd. The concessionaire paid Rs 471 crore to NHAI.
