The government on Wednesday approved four-laning of the 112-Km Cuttak-Angul section of the National Highway-42 in Odisha in BOT (toll) mode at a total expenditure of Rs 1,575 crore on design, build, finance, operate and transfer (DBFOT) basis.
The project, under the National Highways Development Project (NHDP) Phase III, would help in reducing the time and cost of travel for traffic, particularly heavy traffic, plying in the stretch buzzing with industrial activity.
“Development of this stretch will also help uplift the socio-economic condition of this region of the state. It will also increase employment potential for local labourers for project activities,” an official statement, issued after the meeting of the Cabinet Committee on Economic Affairs (CCEA), said.
Bids from interested parties have already been invited on the basis of provisions of the model concession agreement. The Centre would provide grant of up to 40% of the total project cost as viability gap funding (VGF).
The project was in 2011 awarded during the UPA-II regime to Ashoka Buildcon and a concession agreement in March, 2012. However, due to non-fulfilment of condition precedents by the NHAI as per the provisions of the agreement, the pact was terminated on mutual consent.