Larsen and Toubro, the KMC-IL&FS Transportation consortium and Unity Infra among others have emerged as the best bidders for highway projects valued at a total estimated cost of Rs 10,000 crore. The bids were opened here on Friday.
In the last three days, bids for highway projects of 1,144 km have been opened. With these, the National Highway Authority of India (NHAI) has inched closer to awarding 6,600 km of highway projects in the current fiscal — a record high and 28 per cent growth over the previous fiscal. Some key procedural improvements that helped NHAI save time include annual pre-qualification process and e-tendering. Another time-related process relaxation was made by an inter-ministerial committee, allowing NHAI to open bids early this year.
“These bids are providing a net present value saving of Rs 6,451 crore to the Government. In the full year the total benefit (premium/grant versus what was expected) to NHAI has been to the order of Rs 30,980 crore,” estimate NHAI sources.
The highway bidders win the rights to design the highway, raise finance and spend money to develop the project, and operate it for the pre-decided concession period. In return, the developer gets to keep the toll charges for the entire concession period.
The premium quoted by the bidders is on an annual basis. They usually go up by five per cent every year. The concession period for most of these projects are 20-25 years.
The Finance Minister, Mr Pranab Mukherjee, made a reference to such premium bids in his Budget speech.
“In the financial year 2011-12, 58 projects of 7,400 km have already been awarded. This is about 40 per cent more than the best ever projects awarded the last year,” the Highways Ministry stated. In addition, between NHAI and Highways Ministry, bids for 982 km of highways have been received, which are under evaluation and decision is to be taken soon.
NHAI has awarded 49 projects of 6,491 km. In addition, Ministry of Road Transport and Highways has awarded nine projects of 908 km through State Government agencies.