The road transport and highways ministry has ordered cancellation of the bidding process for Eastern Peripheral Expressway (EPE) as the project received only one bid from Reliance Infrastructure. It has now asked the National Highways Authority of India (NHAI) to start afresh and prepare a new detailed project report (DPR) taking into account change in construction costs and traffic projection.

Eastern Peripheral Expressway (EPE) project was planned in 2005 to free Delhi of road congestion. In 2007, the year when the old DPR was submitted, the cost of the project was estimated at Rs 2,334 crore. NHAI had pre-qualified 8 bidders but only Reliance Infrastructure submitted the final bid.

The decision to go for a fresh DPR was taken last month after road secretary RS Gujral held a series of review meetings with officials from NHAI. The ministry has also sought a fresh approval from Public Private Partnership Approval Committee (PPPAC) as it estimates that the project would now cost Rs 2,699 crore instead of earlier-approved Rs 2,300 crore. The letter to this effect was sent on September 22, 2010.

The ministry has also increased the concession period of the project from 20 years to 23 and a half years to bring it at par with the Western Peripheral Expressway, which was planned along with EPE. Gujral also asked NHAI to invite request for proposal again as the bidders earlier shortlisted are scrapped, senior officials in the ministry said.

Meanwhile, NHAI has acquired 92% of total land required. The authority requires 1,680 hectare of land for the project as land acquisition cost has increased due to persistent demand of increased rate of compensation by the land owners, especially in Uttar Pradesh.


Road secy to decide on 13 key NHAI posts soon

The government-appointed panel headed by road transport and highways secretary RS Gujral will soon finalise candidates for the National Highways Authority of India?s (NHAI) 13 key posts , which is expected to enhance the body?s efficiency in awarding projects and execution.

The search-cum-selection committee is looking for people for the post of chief general managers (CGMs) in the fields of safety, project planning, award and management, law, and quality enhancement. The committee has drinking water supply secretary Arun Mishra and Inland Waterways Authority of India chairperson Bhupinder Prasad as members.

The first meeting of the panel took place on September 23 and it is expected that the candidates will be finalised in the second meeting within next 15 days. The move is part of the government?s intention to restructure the National Highways Authority of India by creating 26 additional posts of CGMs over and above existing 13. The government approved restructuring of NHAI in 2007.