Infrastructure builder GVK has emerged as the frontrunner to develop and operate the 330-km stretch Shivpuri-Dewas (in Madhya Pradesh) national highway. When the bids were opened today, the company emerged as the best bidder, offering an annual premium of Rs 180.9 crore to the National Highways Authority of India (NHAI), India's national highways manager. The premium is set to increase by 5 per cent for every year of operation during the concession period of 30 years.
During this period, the company will develop and operate the stretch, as well as collect toll from vehicles that use the highway. The estimated cost of the project is Rs 2,815 crore. NHAI will issue the final letter after initial verification of papers.
Other premium offers
NHAI has received premium offers for three more toll road projects over the last few days.
Last week, another leading infrastructure company, GMR, emerged as the frontrunner to develop and operate a 556-km stretch of the Kishangarh-Udaipur-Ahmedabad section, by offering to pay a premium of Rs 636 crore to the NHAI in the first year of operations.
In subsequent years, the premium payment to NHAI would increase by five per cent each year. Government estimates the total project cost to be Rs 5,387 crore. Other bidders eyeing the project were GVK, L&T, Soma Tollway, HCC and NCC. Incidentally, GVK was the second best bidder for this project.
Similarly, for a project to four-lane the 150-km stretch between Aurang and Saraipalli, BSCPL Infrastructure won the project by offering a premium of Rs 29.7 crore in the first year of operations.