The state government has signed an agreement with L&T for three highway projects. The infrastructure major will pay Rs. 6,000 crore as premium to the government over the next 20 years. Also, Rs. 727 crore subsidy has been waived off from both the Centre and State governments under Viability Gap Funding scheme.
Gujarat's minister for road and construction Anandiben Patel confirmed that as per the concession agreement, L&T has been authorised to to collect toll charges on all the three highways after the expansion. The three stretches include Halol-Godhra-Shamlaji, Ahmedabad-Viramgam-Maliya, Rajkot-Jamnagar-Vadinar. These three projects are being executed on built-operate-transfer (BOT) basis and the company will pay a premium of Rs. 6,217.5 to the State government.
The premium will be paid from the revenues of toll collected from transporters. Interestingly, Planning Commission has suggested that other states should prepare such agreements when this concession agreement formula for presented before the commission for approval, said Patel.
It may be mentioned here that Gujarat government has undertaken roads expansion, modernisation and repair projects in the wake of rapid industrialisation and growing population in the state. As part of this expansion scheme, L&T entered into an agreement with the state government for four laning of these three highways involving an investment of Rs. 4,308 crore.
The length of Halol-Godhra-Shamlaji road is 173.06 kms, while other stretches have a length of more than 325 kms.
“The four laning work of Halol-Shamlaji road is slated to kick off next year and Rs. 808.66 crore will be pumped in for the project. This road is likely to be ready by the year 2011,” she said, adding L&T was to be paid a subsidy of Rs. 319.12 crore subsidy from Centre government under Viability Gap Funding scheme, while Gujarat government was to pay Rs. 158.56 crore.
Apart from this, Rs. 158.56 crore is to be paid to the company for maintainance and repairs. The concession agreement inked for these three projects is for the period of 20 to 22 years. Gujarat government was to pay Rs. 300 crore to the company for Halol-Shamlaji road. Now, as per the formula, the company will pay a premium of Rs. 1,771.51 crore to the State government from the revenues of toll charges to be collected on the stretch.
