Ideal Road Bids Highest For Expressway, NH-4 O&M Work

Mumbai, Feb 25: | Updated: Feb 26 2004, 05:30am hrs
Ideal Road Builders Pvt Ltd has emerged as the highest bidder for the Maharashtra State Road Development Corporations (MSRDC) bid for the operation and maintenance (O&M) of Mumbai-Pune expressway and Mumbai-Pune section of NH-4 and four laning and improvements of Mumbai-Pune section NH-4. Ideal Road Builders, which is BOT operator and toll country, had quoted Rs 918 crore.

The list of other bidders included Gammon India in joint venture with Ashoka Buildcon, Viva Highways and Viva Infrastructure Pvt Ltd (Rs 910 crore), Shaktikumar Sancheyati in joint venture with Sangam India and Nidihi Mercantile (Rs 800 crore). Hindustan Construction Company had also submitted its tender to MSRDC, however it was not opened as the former had not deposited the earnest money deposit.

MSRDC sources told FE that it had invited tenders for these projects on December 8 and these bidders had submitted them on February 20. With Ideal Road Builders emerging as the highest bidder for these projects, the company is expected to pay Rs 918 crore upfront to MSRDC. The contract for these projects would be awarded shortly to Ideal Road Builders.

Ideal Road Builders chairman and managing director DM Mhaiskar also confirmed that his company has emerged as the highest bidder when MSRDC opened bids on Wednesday. "ICICI Bank, Canara Bank, Bank of India, Union Bank of India and Indian Overseas Bank have shown their willingness and have given the comfort letters to finance these projects," he said.

According to Mr Mhaiskar, the construction of NH-4 from two lane to four lane road alongwith additional works on Mumbai-Pune expressway would be completed in 24 months. The project cost involved at todays price level is Rs 1,500 crore of which Rs 918 crore -upfront payment to MSRDC on day one, Rs 360 crore -construction cost of the facility, Rs 754 crore -O&M cost of Mumbai-Pune expressway and section of NH-4 between Shilphata to Dehu road during concession period of 15 years and Rs 29.40 crore -various payments to MSRDC.