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News Thursday, 08 Jan, 2009
Work on Gurgaon Jaipur highway to start by December

It is reported that construction work on the 6 laning project of the 225.6 kilometers long Gurgaon Jaipur national highway is expected to start by December 2008. The concession agreement for the project was signed on June 6th 2008 between National Highways Authority of India and the private developers. The project that is part of NHDP Phase V has been awarded on BOT toll basis on design build operate finance basis.

NHAI had so far acquired 70% of the total land and the remaining would soon be handed over to the private developer.

The Gurgaon Kotputli Jaipur on NH 8 is a high traffic corridor connecting Haryana and Rajasthan. The corridor was 4 laned as part of NHAI's Golden Quadrilateral project. The project is also significant as it is amongst the early projects where NHAI has adopted the new model concession agreement where NHAI will have a share in the toll revenue earnings during the concession period. This is unlike the previous approach where projects were offered based on the upfront payment offered to NHAI.

Mr Shashank Shekhar VC of KMC Constructions Limited said that financial closure would be reached within 6 months, soon after which construction work would begin.

For the Gurgaon Jaipur section, the ETA KMC consortium has offered a revenue sharing proportion of 48%, which is amongst the highest seen in NHDP V projects awarded so far. This proportion would increase by 100 basis points every year, up to the end of the concession period.

Using the new model concession agreement, NHAI in February 2008 had awarded 5 projects under NHDP V including the Gurgaon Jaipur section. The others were Chennai Tada, Surat Dahisar, Chilkaluripet Vijaywada and Panipat Jalandhar.

 
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