)
Once the National Highways Authority of India (NHAI) takes control of the Delhi-Gurgaon expressway from project concessionaire DS Construction, it might do away with at least one of the three toll plazas, allowing a free ride to commuters on the inter-city route.
“If we are able to take over the project, we are looking to remove one or two toll gates at the expressway. That would mean we won’t be able to collect toll at two different points. But the government is ready to do that, rather than causing inconvenience to users,” said a senior NHAI official on condition of anonymity, as the matter was under litigation at the Delhi High Court.
Annual toll collection from the project stands at Rs 160 crore. If the government does away with the toll gate, it would have to take over a part of the debt incurred on the project.
NHAI and DS Construction have been embroiled in a bitter legal battle, after the roads authority issued a termination notice to DS Construction over frequent complaints of inordinate delays at the toll plaza. NHAI also found irregularities in the manner in which the company had raised loans from IDFC and other financial institutions, without its permission.
NHAI has been looking at various means to vacate a stay on the takeover of the project. On Tuesday, the Ministry of Road Transport and Highways had decided to ask the Attorney General to represent its case and fast-track the process. “The decision to terminate the contract is a government decision. We do not see any reason why that needs to be challenged in the first place,” the official added.
Another NHAI official said the authority was keen to remove toll gates at two locations on the expressway. “We are of the opinion that the toll gates be removed to ensure the public is not affected,” he said, adding the authority didn’t favour any state government taking over the project. Earlier, the Haryana government had expressed desire to take over operational control of the project.
The Delhi-Gurgaon expressway, built on a 28-km stretch, was a flagship infrastructure programme of the Centre. NHAI had awarded the build-operate-transfer project to Jaypee DSC Ltd, now Delhi Gurgaon Super Connectivity (DGSCL) in 2002. The project was completed in 2008. DGSCL owns the rights of operating the expressway and collecting toll till 2028. The Jaypee Group exited the project in 2004.
Removing toll plazas could have a larger political impact, as Gurgaon has a large section of the urban middle class. Also, Delhi and Haryana go to polls later this year and next year, respectively.
India’s roads sector has been struggling since the past few years, owing to the lack of private sector participation, among other reasons. A number of highway projects, including 20 projects worth Rs 27,000 crore, are stalled for want of various clearances.
The government, which is trying to revive investment in the sector, has proposed allowing amicable exits for concessionaires in ongoing and completed national highway projects, subject to approval from lenders. In the past few months, infrastructure majors, including GVK and GMR, have pulled out of projects due to financial constraints. The Prime Minister’s Office has asked the roads ministry to fast-track projects.
“If we are able to take over the project, we are looking to remove one or two toll gates at the expressway. That would mean we won’t be able to collect toll at two different points. But the government is ready to do that, rather than causing inconvenience to users,” said a senior NHAI official on condition of anonymity, as the matter was under litigation at the Delhi High Court.
Annual toll collection from the project stands at Rs 160 crore. If the government does away with the toll gate, it would have to take over a part of the debt incurred on the project.
NHAI and DS Construction have been embroiled in a bitter legal battle, after the roads authority issued a termination notice to DS Construction over frequent complaints of inordinate delays at the toll plaza. NHAI also found irregularities in the manner in which the company had raised loans from IDFC and other financial institutions, without its permission.
NHAI has been looking at various means to vacate a stay on the takeover of the project. On Tuesday, the Ministry of Road Transport and Highways had decided to ask the Attorney General to represent its case and fast-track the process. “The decision to terminate the contract is a government decision. We do not see any reason why that needs to be challenged in the first place,” the official added.
Another NHAI official said the authority was keen to remove toll gates at two locations on the expressway. “We are of the opinion that the toll gates be removed to ensure the public is not affected,” he said, adding the authority didn’t favour any state government taking over the project. Earlier, the Haryana government had expressed desire to take over operational control of the project.
The Delhi-Gurgaon expressway, built on a 28-km stretch, was a flagship infrastructure programme of the Centre. NHAI had awarded the build-operate-transfer project to Jaypee DSC Ltd, now Delhi Gurgaon Super Connectivity (DGSCL) in 2002. The project was completed in 2008. DGSCL owns the rights of operating the expressway and collecting toll till 2028. The Jaypee Group exited the project in 2004.
Removing toll plazas could have a larger political impact, as Gurgaon has a large section of the urban middle class. Also, Delhi and Haryana go to polls later this year and next year, respectively.
India’s roads sector has been struggling since the past few years, owing to the lack of private sector participation, among other reasons. A number of highway projects, including 20 projects worth Rs 27,000 crore, are stalled for want of various clearances.
The government, which is trying to revive investment in the sector, has proposed allowing amicable exits for concessionaires in ongoing and completed national highway projects, subject to approval from lenders. In the past few months, infrastructure majors, including GVK and GMR, have pulled out of projects due to financial constraints. The Prime Minister’s Office has asked the roads ministry to fast-track projects.
