The Rs 1,120 crore project, part of the ambitious 13,250 km long National Highway Development Project (NHDP), was held up due to delay in clearance of the ADB loan due to economic sanctions on India following nuclear blasts in May 1998.

National Highway Authority of India (NHAI) is likely to award the civil contracts to the selected contractors for the three stretches on Surat-Manor highway in Gujarat-Maharashtra, surface transport ministry sources said.

NHAI has selected a consortium of SKEC of Korea and Dodsai & Co for four-laning of 80 kms and LG Engineering and Construction and Patel Engineering Co for another 40 kms. Larsen & Toubro has been chosen for the last stretch of 56 kms, sources said.

Sources said NHAI has completed 80 per cent of the land acquisition for the Surat-Manor highway project, which is expected to be completed by 2003.

The 176 km-stretch, which would be a tolled project, is one of the busiest corridors on the Delhi-Mumbai highway.

ADB's $180 million assistance, which is the first non-basic human need project to be cleared by the multilateral funding agency after the imposition of sanction, would form 67 per cent of the total project cost.

The remaining cost of the project would be raised by NHAI, sources said.The loan with a sovereign guarantee from the central government has a repayment period of 25 years, including a grace period of five years.

The project was cleared last month by the Public Investment Board and is awaiting the final nod from Cabinet committee on economic affairs.

So far 588 kms of golden quadrilateral - connecting the four metros - and 628 kms of North-South and East-West corridors have been four-laned, while civil works on another 735 km on the quadrilateral and 272 kms on the corridors are in progress.

The completed project include 196 km Delhi-Agra stretch on NH-2, 373 km and Delhi-Srinagar on NH-1.

NHAI is planning to complete the awarding of contracts for the 5,952 km long golden quadrilateral by 2001-02 and 7,300 km North-South and East-West corridors by 2005-06.