GVK consortium in race for NH-8 contract

P. Manoj

NEW DELHI, Dec.10

GVK International and the joint venture between L&T and J&P are in the reckoning to bag the six-lane highway project between Jaipur and Kishangarh on NH 8 in Rajasthan which is proposed to be developed on a build,operate and transfer (BOT) basis under the direct tolling method.

``GVK International and L&T-J&P consortium had submitted their bids when fresh bids were invited by the National Highways Authority of India (NHAI) from all the six short-listed bidders last month for developing the project which is estimated to cost Rs 673 crore,'' Government sources said. The last date for submission of bids was December 7.

Reliance Industries Ltd, Group 5 (South Africa) and Bin Hafeez (West Asia) stayed away from the bidding process again.

Interestingly, L&T-J&P had submitted a fresh bid despite the fact that it was the lone bidder in the last round. ``This is a significant development and may point to a re-working in the price bid submitted by the same consortium in the last round,'' the sources said.

The NHAI had invited fresh bids after changing certain tender conditions and some clauses in the concession document which were sought by the L&T-J&P combine in their earlier lone bid for developing the project.

The changes sought by the lone bidder included provisions on disbursing the capital grant component of the project, tenure of the concession period and the introduction of a revenue sharing concept between NHAI and the private operator.

After agreeing to make these changes, the NHAI wanted this benefit to be made available to all the short-listed bidders to avoid legal consequences and called for fresh bids.

The bids submitted by GVK International and L&T-J&P combine will be evaluated on the basis of the capital costs and the capital grant quoted by the bidders. The bidder quoting the lowest in both these cases will be awarded the contract.