“Negative grant” cheque of Rs. 471 crores presented to Prime Minister.
Less than a month after presenting the largest ever “negative grant” cheque for
any highway project in the country, Union Minister of Shipping, Road Transport
and Highways Thiru T. R. Baalu presented a cheque of Rs. 471 crores to Prime
Minister Dr. Manmohan Singh here yesterday.
The cheque has been received from M/s. L&T Vadodara-Bharuch Tollway Limited
as upfront “negative grant” towards six-laning of Vadodara-Bharuch section (km
108.700 to km 192.00) of NH-8 in Gujarat. It was presented to the Prime Minister in
the presence Sh. Vijay Singh, Secretary, Department of Road Transport and
Highways, Sh. Pradeep Kumar, Chairman, NHAI and the representatives of the
Concessionaire M/s L & T Vadodara Bharuch Tollway Ltd., Sh. A. Vasishta, Head,
Business Development and Sh. S. Damle, Joint General Manager (Finance).
This marks yet another mile stone in the National Highways Development Project
Phase V (NHDP-V) under which six-laning of 6500 kms of existing four-lane National
Highways is being taken up on Build-Operate-Transfer (BOT) basis.
The amount became payable by the concessionaire M/s. L&T Vadodara Bharuch
Tollway Ltd on its achieving financial close, i.e. tying up the loan for the project. In
a competitive bidding process for award of BOT concession, the concessionaire
had quoted upfront negative grant of Rs. 471 crore, payable after financial close.
Media Contact Information
Bhupendra Kainthola
Deputy General Manager (Media Relations)
E-mail: bkainthola@nhai.org
www.nhai.org
NHDP-V approved by Government in October 2006 envisages six-laning of
6500km of existing 4 lane National Highways sections of which 5700 km is on
Golden Quadrilateral and 800 km on other sections. The projects will be taken up
on BOT (Toll) basis.
Advance action for Vadodara Section was taken in anticipation of approval of
NHDP-V and the contract was awarded in May 2006 by seeking specific
Government approval. Both contracts were signed in July 2006.
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