GMR may face legal action for scrapping road contract

08 Jan 2013 CW Team

GMR Group, which has recently announced to walk out of Kishangarh-Udaipur-Ahmedabad road project, is likely to face legal action from the National Highways Authority of India (NHAI). GMR announced to drop the project 16 months after securing the project order.

The project is estimated to have required an investment of Rs 5,387 crore. The Bangalore-based group had won the project in Western India through international competitive bidding at Rs 636 crore annual premium for 26 years.

NHAI is examining the case and based on the experts advise may resort to legal recourse, a senior NHAI official told a leading news agency on January 7. Meanwhile, GMR Infrastructure said it has terminated its contract with NHAI for building the Kishangarh-Udaipur-Ahmedabad highway.

GMR Kishangarh Udaipur Ahmedabad Expressways Limited, a subsidiary of GMR company, has terminated the concession agreement entered into with NHAI for six laning of 555 Km Kishangarh-Udaipur-Ahmedabad highway, the company said in a filing to the Bombay Stock Exchange.

Infrastructure Transport

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