CCEA clears six highways projects at revised costs

The Cabinet Committee on Economic Affairs (CCEA) on Friday cleared six highways projects at revised costs, alongwith two deep drought berths at the Paradip Port at an investment of Rs 1097 crore.

In Maharashtra, the development of MP/Maharashtra Border-Dhule Section and Pimpalgaon-Nasik-Gonde section under National Highways Development Programme, phase III, have got the CCEA approval at a revised cost of Rs 751.68 cr and Rs 799.67 crore.

The National Highways Authority of India has completed the financial bidding process for the two projects. The CCEA approval will enable the authority to sign the contract with the bidders for the project. NHAI will award the projects on a revenue sharing model.

In case of the Pimpalgaon-Nasik-Gonde project, the concessionaire will start sharing the revenue almost four years before beginning the commercial operation of the project. In case of revenue being shared before the commencement of commercial operations, the initial percentage of sharing will be number of days divided by 365 plus 2%. An additional 1% will be added in the initial rate every subsequent year.

In case of the MP Maharashtra border Dhule stretch, the concessionaire will start sharing the revenue after almost eight years of commercial operations. In this case the revenue will be calculated at 2% for the first year and additional 1% in the subsequent years.

CCEA also approved development of Panikoili-Keonjhar-Rimouli,Rimouli-Roxy-Rajmundra and Chandikhole-Duburi-Talcher projects in the State of Orissa under NHDP Phase III.

The first stage of the bidding process, which involves pre-qualification of the bidders has already been completed by NHAI. The second stage of bidding process is in progress. The concession period for the Panikoili-Keonjhar-Rimouli section will be 20 years. For Chandikhole-Duburi-Talcher Section and Rimouli-Roxy-Rajmundra section the concession period is 18 and 25 years respectively. In addition, two laning of paved shoulder of 80-km Karaikudi-Ramanathapuram in Tamilnadu at a cost of Rs 530.33 crore and four-laning of Armur-Adloor Yellareddy in Andhra Pradesh at an investment of Rs 531.67 crore also got CCEA approval.

In an other decision, the CCEA approved the project of construction of deep draught coal berth at Paradip Port at an estimated cost of Rs 479.01 crore, out of which Rs 408.90 crore will be borne by the BoT operator, while Rs 70.20 crore will be borne by the Paradip Port Trust. The length of the approved berth would be 370 meter, which will be capable of handling vessels of 1,25,000 dead weight tonnage (DWT). The project is to be implemented within a period of 36 months from the date of award of the concession.

Also, the CCEA approved construction of deep draught iron ore berth at Paradip Port on BoT basis at an estimated cost of Rs 591.35 crore, out of which Rs 506.25 crore will be borne by the operator, while Rs 85.10 crore will be borne by the Paradip Port Trust. The project is to be implemented within a period of 36 months from the date of award of the concession.