Pact signed for Maharashtra, Belgaum NH

Our Bureau

NEW DELHI, Nov. 22

THE National Highways Authority of India (NHAI) and Punj Lloyd- IL&FS consortium have signed the concession agreement for developing the highway project between Belgaum and Maharashtra border on NH 4 in Karnataka on annuity basis.

Punj Lloyd-IL&FS consortium will develop the highway project through the special purpose vehicle North Karnataka Expressway Ltd set up for the purpose.

The SPV will implement the project and maintain the highway for 15 years for which it will be paid a fixed semi-annual sum of Rs 50 crore by the NHAI to cover the capital costs, operation and maintenance expenses of the project and returns thereon.

Under the annuity method, the private operator will not collect tolls from the users of the facility. The 77 km-long project involves converting the existing two-lane stretch into a four- lane facility (of which two lane will be made of concrete) six major bridges, 12 minor bridges, six underpasses, 158 culverts and 69 km of service road beside huge quantity of earthwork.

The project also involves segregation of traffic and access control, an official statement issued by NHAI has said.