• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

P. Manoj

Under the annuity concept, the private operator will not collect tolls from the users of the facility, but he will be paid a fixed semi-annual sum termed `annuity' by the NHAI during the concession period to compensate him for the capital costs, operation and maintenance expenses of the project and the returns thereon.

NEW DELHI, Jan. 28

GAMUDA (India) Pvt Ltd, a subsidiary of Malaysia's Gamuda Berhad, is set to bag the Durgapur Expressway project between Dankuni and Palsit on NH-2 in West Bengal by quoting the lowest semi-annual annuity amount of Rs 39.98 crore.

The four-lane project estimated to cost Rs 466 crore is being developed on the annuity route by the National Highways Authority of India (NHAI) with private sector participation.

Out of the eight bidders who submitted their financial bids last week, Gamuda emerged as the lowest bidder. The consortium of GVK International and B Senaiah emerged second with a quote of Rs 44.4 crore while L&T came third with a quote of Rs 52.7 crore.

This would be the first expressway project to be developed on annuity basis. The lowest annuity bid submitted by Gamuda for the 69 km-long project would be forwarded soon to the Board of NHAI for its consideration and clearance, the Government sources said.

By quoting the lowest annuity amount for the Dankuni-Palsit project (called Durgapur Expressway), Gamuda is set to bag a contiguous highway stretch totalling 132 km on NH-2 being developed on the annuity method.

Gamuda in combination with WCT has already bagged the 63 km-long annuity highway project between Panagarh and Palsit at a semi-annual annuity price of Rs 55.5 crore.

The NHAI has awarded seven projects to private operators to be developed on annuity basis.

Under the annuity concept, the private operator will not collect tolls from the users of the facility, but he will be paid a fixed semi-annual sum termed `annuity' by the NHAI during the concession period to compensate him for the capital costs, operation and maintenance expenses of the project and the returns thereon.The Durgapur Expressway project will have a concession period of 15 years excluding a 2.5-year construction period.

Send this article to Friends by E-Mail

Stories in this Section
Public views sought on AAI, port trust Bills

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line