Centre approves Rs 1696-cr worth highway projects
Nitin Gadkari announced approval of `699.19 cr for Khokhra Gujarat Border, Rs 421 cr for Gauripur bypass, and Rs 576 cr for 4-laning highway in Karnataka
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New Delhi: Union Minister for Road Transport and Highways Nitin Gadkari on Friday announced the approval of a Rs 699.19 crore project for upgrading the Khokhra Gujarat Border – Vijayanagar – Antarsuba – Mathasur Road section of National Highway 58 in Palanpur district of Gujarat to a 2-lane highway.
The minister said National Highway-58 connects Gujarat and Rajasthan and also connects Ambaji Temple, Udaipur, Polo Forest and other archaeological monuments and various tourist places. “This section of National Highway 58 is proposed to upgrade the existing single/two-lane road to 2 lanes and involves realignment in 14 stretches passing through hilly terrain. The project will provide better connectivity and boost economic activities in the region,” the minister said. He said that the project has been sanctioned under the Hybrid Annuity Model which is a variant of the public-private partnership (PPP) mode and is adopted for projects not considered viable in BOT (Toll) mode.
“Under the hybrid model, the National Highways Authority of India (NHAI) pays 40 per cent of the total project expenditure. This payment is released in ten equal instalments based on the completion of targeted project milestones. The remaining 60 per cent amount has to be arranged by the road developer,” the minister added.
He said that the project concessionaire is selected through an open, transparent and competitive bidding process. “Private companies on their own are reluctant to invest in these projects as they have a long gestation lag before they are completed and returns start to flow in,” the minister said.
