The total length of the projects will be around 3,000 km, sources in the ministry of road transport and highways said, adding that as many as 18 of these would be awarded via the hybrid annuity model under which the government pays 40% of the total project cost in phases and the developers’ risk is mitigated.
Another 13 will be allocated through the conventional engineering procurement and construction model where the government bears the entire cost, and the remaining six using the BOT (toll) model, which is yet to gather momentum, despite many investor-friendly steps taken by the government.
Sources said bids received for 25 of these projects (1,921 km) are currently under evaluation and each has received an average of five bids. Developers for nine projects have already been selected, the sources added, but refused to reveal their names. The ministry has invited bids for an additional five projects that have a total length of 261.62 km. Two of them are proposed to be built under the EPC model and another two as hybrid annuity projects while one stretch connecting Chittorgarh and Udaipur in Rajasthan will be developed using the BOT (toll) model.
Bids are to be invited for 7 projects with a total length of 600 km and costing Rs 7,200 crore. Three of them would be built with the hybrid annuity model while two each using the EPC and BOT (toll) routes. NHAI would be the implementing agency for all these projects.
In case of awarding highway projects, BOT (toll) continues to be as the most preferred route for the road ministry followed by hybrid annuity plan. EPC comes as the last resort as in this case, the cost of building EPC comes as the last resort as in this case, the cost of building road is entirely borne by the government. However, with the investors’ apathy towards BOT (toll) projects, hybrid annuity is gradually catching the fancy of the investors.
The ministry has set a goal of awarding 25,000 km of highways this fiscal, two and a half times what was achieved last year. However, awarding of highway projects during the April-July period of the current fiscal was lower at 1,840 km compared with 3,158 Km awarded during the corresponding period last fiscal. The ministry awarded projects totaling 1,070 km (including 32 km by NHIDCL) and the remaining 770 km was awarded by NHAI.
However, awarding of highway projects during the April-July period of the current fiscal was lower at 1,840 km compared with 3,158 Km awarded during the corresponding period last fiscal. The ministry awarded projects totaling 1,070 km (including 32 km by NHIDCL) and the remaining 770 km was awarded by NHAI.
The construction target has also been enhanced in the same proportion at 15,000 km for the current fiscal which calls for an average of 41 km per day construction. However, only 2,400-km highways have been built during the April-July period.
The gross budgetary support for the central sector roads for 2016-17 is Rs 43,807 crore. Apart from this, NHAI has been authorised to raise internal and extra budgetary resources (IEBR)/borrowings of Rs 59,279 crore during the current fiscal. This would be sufficient for the award of these projects, road
This would be sufficient for the award of these projects, road transport and highways minister Nitin Gadkari said in Parliament on July 28.
