GVK faces NHAI axe over road project.

The National Highways Authority of India (NHAI) has served showcause notices for termination and debarment on GVK Transportation for failure to mobilise the needed money for the Rs. 2,815-crore Shivpuri-Dewas project in Madhya Pradesh.

The company was awarded the project in January 2012, under the fourth phase of the National Highways Development Programme.

In the notice, issued last month, NHAI told the infrastructure major there was 'no merit or cogent ground' in the company's explanation for non-achievement of financial closure and other conditions required to be done before work begins on the project. Holding the company responsible for breach of the concession agreement, NHAI’s notice says GVK even failed to attend a personal hearing opportunity on April 11.


BS