Road project cost jumps as NHAI invites fresh bids.

The National Highways Authority of India (NHAI) has, after a delay of almost three years, invited bids for the Shivpuri-Dewas road project in Madhya Pradesh that was earlier awarded to GVK Transportation.

Rebids have been called in three packages in the design, build, finance, operate, transfer (DBFOT) model at Rs. 3,500 crore. When the contract was awarded to GVK Transportation in January 2012, the value of the project was Rs. 2,815 crore, according to a senior NHAI official.

The project is for widening 333 km of the Shivpuri-Dewas section of NH3 to four lanes. It will be executed in three parts: Shivpuri-Guna at a cost of Rs. 849 crore for 97.7 km, Guna-Biaora at Rs. 1,074 crore for 93.5 km and Biaora-Dewas at Rs. 1,609 crore for 141 km. In the DBFOT model, a developer operates a road project for a specific time to recover investment and earn profits before transferring it to the government.

The government is planning to tender out smaller stretches of highways to save time and avoid delays.

'It is always easier to manage award of small stretch of highways, rather than a big one. This will also ensure speedy execution of the project,' a senior official from the roads ministry said.


BS