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NHPC may bid for road construction contracts - Report

Infra News - Published on Mon, 18 Mar 2019

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LiveMint citing, a top company executive, saying that in what will add to the competition in the road-construction space, state run NHPC Ltd is exploring to bid for road projects. This development comes in the backdrop of a revival of the highway sector and will pit the public sector unit against private road sector developers such as IRB Infrastructure, Hindustan Construction Co Ltd, Larsen and Toubro Ltd and Ashoka Buildcon Ltd among others.

Mr Balraj Joshi, chairman and managing director, NHPC in an interview, the new business opportunity is being considered by NHPC in India and overseas as part of its diversification strategy.

Given that hydropower projects are located in far-flung areas, the PSU has been constructing roads in remote locations for its own usage. Also, in comparison to a road project, executing a hydropower project is time-consuming and tedious.

Mr Joshi said that “We can venture into roads. We are already doing some PMGSY roads in Bihar."

NHPC wants to leverage its learnings from the work done under the Pradhan Mantri Gram Sadak Yojana roads in Bihar to tap the booming business. While the firm has constructed around 3209 km of roads in Bihar, the 3229 km project was awarded on a turn-key basis under the marquee scheme, entailing an investment of Rs1725.65 crore. The plan now is to participate in ‘tariff-based or toll-based’ bids.

PMGSY was launched in 2000 by the previous National Democratic Alliance (NDA) government with the objective of providing all-weather road connectivity to unconnected rural habitations.

He said that “This opportunity can be anywhere, whether in India or elsewhere. We have thought about it and will explore it."

NHPC is also attracted by the state run National Highways Authority of India’ (NHAI) Bharatmala project wherein under the first phase, 24,800km of roads and highways will be built over five years for an estimated cost of INR 5.35 trillion.

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Posted By : Rabi Wangkhem on Mon, 18 Mar 2019
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