The National Highways Authority of India yesterday told Prime Minister Atal Behari Vajpayee that private sector participation in National Highway Development Project would get a fillip after successful introduction of build-operate-transfer scheme in Jaipur-Kishangarh highway project. The authority made a detailed presentation on the NHDP project before Vajpayee.
One NHAI official told Business Standard that Vajpayee wanted to know why more private sector participation cannot be encouraged in the NHDP project. At present, private sector funding is expected to the tune of Rs 4,000 crore, of the total project cost of Rs 54,000 crore, without having connectivity to ports. The NHDP project is comprised of golden quadrangle and north-south and east-west corridor.
NHAI officials informed Vajpayee that scope of private sector participation in the highway project was limited as it was a highly capital intensive sector. Also, alternative roads needed to be developed to introduce tolling.
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However, the private participation would get a boost after a successful implementation of Jaipur-Kishangarh (NH-8) highway project under BOT scheme, NHAI officials told Vajpayee.
The NHAI has issued tender documents to five shortlisted bidders _ Reliance, L&T, J&P of Cyprus, Group 5 from South Africa and Ben-Hafeez from the West Asia _ for four-laning of Jaipur-Kishangarh highway. The NHAI has issued the tender documents for these companies, asking them to submit their bids within July.
After NH8, the NHAI will take up four-laning of 40km long Neelamangla-Tunkur project under BOT scheme. The project cost is pegged around Rs 160 crore.
The official further said that NHAI would award contract for developing 3,000km of the golden quadrangle in the current financial year. The GQ project is slated to be completed by 2003.
Speaking to BS Task Force on Infrastructure chairman KC Pant said the NHAI did a detailed presentation on targets and steps taken regarding executing NHDP project.
Pant said NHAI officials briefed the Prime Minister on the stretches completed, contracts awarded and plan for the current and next financial year. The highway authority also presented a complete project plan of GQ and financing plan of the NHDP project, Pant said.
With connectivity to ports, the total cost of NHDP project is pegged at Rs 58,000 crore. Of which, Rs 20,000 crore will come from the cess fund and another Rs 20,000 crore would be moped by loans from the international bodies like Asian Development Fund and the World Bank.
While NHAI would raise Rs 12,000 crore from the market borrowings, the rest Rs 6,000 crore is expected to come from the private companies.