GVK Power may back out of road project due to hurdles, delays

Our Bureau Updated - January 08, 2013 at 08:47 PM.

The apex court ruling last year had made it clear that the environmental clearances were required for projects such as these, where there are excavation work and boulder removal.

GVK Power & Infrastructure Ltd, which had secured a mandate to execute the Shivpuri-Dewas highway project in Madhya Pradesh, may also step aside from executing the project due to delays in execution beyond its control. The Hyderabad-based diversified business group, which bagged the mandate to execute the 330-km project from the National Highways Authority of India, under the National Highway Development Project, has expressed its concern in the past about the difficulties it is facing in executing the project due to delays.

The apex court ruling last year had made it clear that environmental clearances were required for projects such as these where there is excavation work and boulder removal etc.

The concessionaire (GVK) and NHAI have been communicating about the issue with divergent stands on the issue. GVK has maintained it attracts

force majeure clause, sources tracking the developments said.

The Rs 3,200-crore GVK Shivpuri Dewas Expressways concession pact was signed in January 2012 which entails a four-lane NH No. 3 between 236 km and 566 km.

The company had also awarded couple of contracts including one to KNR Construction Ltd, also based in Hyderabad and to L&T Construction.

rishikumar.vundi@thehindu.co.in

Published on January 8, 2013 15:17