Tamil Nadu May Scrap Rs 20 bn ECR Elevated Corridor Project
ECONOMY & POLICY

Tamil Nadu May Scrap Rs 20 bn ECR Elevated Corridor Project

The Tamil Nadu government is reviewing an elevated corridor on the East Coast Road that it may scrap, a scheme originally estimated at Rs 2,000 crore, equal to Rs 20 billion (Rs 20 bn). Tendering is under way for the eight point one four kilometre National Highways Authority of India project, which the authority estimated at Rs 1,241 crore, equal to Rs 12.41 billion (Rs 12.41 bn). Sources said the tender process for projects awarded over the past six months is being reviewed amid cost concerns.

Officials identified irregularities in the contract award process for the elevated corridor and other projects, and suggested the Thiruvanmiyur package was unlikely to proceed at the price quoted under the previous government. A Bhopal based firm filed a petition in the Madras High Court alleging its bid was rejected during financial evaluation despite being Rs 500 crore lower than the selected bidder, a gap equivalent to Rs 5 billion (Rs 5 bn) and about 25 per cent of the tendered cost.

Observers noted that National Highways Authority of India flyovers are built to stricter specifications to carry heavy commercial traffic, which can raise costs compared with state highways projects. A retired highways engineer said the lowest financial bidder may be rejected if it fails to meet eligibility conditions and that reasons for exclusion are normally communicated in writing, but the basis for overlooking the lower bid in this case remained unclear.

The Tamil Nadu State Highways Authority issued the Letter of Award in February and signed an agreement giving the contractor 180 days from award to commence civil works, with finance related certificates issued and construction scheduled for August or September if the contract proceeds. The high court had asked the aggrieved bidder to submit a representation and directed TNSHA to decide within ten days of receipt, but the representation was not filed within the court mandated period and the work order was issued to the selected contractor. Officials said the review of award procedures and costs will determine whether the scheme proceeds.

The Tamil Nadu government is reviewing an elevated corridor on the East Coast Road that it may scrap, a scheme originally estimated at Rs 2,000 crore, equal to Rs 20 billion (Rs 20 bn). Tendering is under way for the eight point one four kilometre National Highways Authority of India project, which the authority estimated at Rs 1,241 crore, equal to Rs 12.41 billion (Rs 12.41 bn). Sources said the tender process for projects awarded over the past six months is being reviewed amid cost concerns. Officials identified irregularities in the contract award process for the elevated corridor and other projects, and suggested the Thiruvanmiyur package was unlikely to proceed at the price quoted under the previous government. A Bhopal based firm filed a petition in the Madras High Court alleging its bid was rejected during financial evaluation despite being Rs 500 crore lower than the selected bidder, a gap equivalent to Rs 5 billion (Rs 5 bn) and about 25 per cent of the tendered cost. Observers noted that National Highways Authority of India flyovers are built to stricter specifications to carry heavy commercial traffic, which can raise costs compared with state highways projects. A retired highways engineer said the lowest financial bidder may be rejected if it fails to meet eligibility conditions and that reasons for exclusion are normally communicated in writing, but the basis for overlooking the lower bid in this case remained unclear. The Tamil Nadu State Highways Authority issued the Letter of Award in February and signed an agreement giving the contractor 180 days from award to commence civil works, with finance related certificates issued and construction scheduled for August or September if the contract proceeds. The high court had asked the aggrieved bidder to submit a representation and directed TNSHA to decide within ten days of receipt, but the representation was not filed within the court mandated period and the work order was issued to the selected contractor. Officials said the review of award procedures and costs will determine whether the scheme proceeds.

Related Stories

Gold Stories

Next Story
Infrastructure Energy

Asian Energy Services Q1 FY27 PAT Rises 129 Per Cent

Asian Energy Services Limited reported a 129 per cent year-on-year rise in net profit to Rs 128 million for Q1 FY27, compared with the corresponding quarter last year.Revenue increased 135 per cent year-on-year to Rs 2.71 billion, supported by continued momentum across its services business, disciplined execution and contributions from domestic and international operations. EBITDA grew 81 per cent year-on-year during the quarter.As of June 30, 2026, the company’s standalone order book stood at Rs 17.54 billion, with around 60 per cent coming from oil and gas services and 40 per cent from min..

Next Story
Infrastructure Urban

BioBTX to Build First Commercial-Scale Circular Chemicals Plant

Dutch circular chemistry technology developer BioBTX is building what it says will be the world’s first commercial-scale plant to convert mixed plastic waste into high-quality aromatic chemicals using its proprietary Integrated Catalytic Cracking Process (ICCP) technology.The facility will be built at Chemical Park Delfzijl on the northern coast of the Netherlands and is expected to create 35 jobs. Covestro, which has been a shareholder and strategic partner of BioBTX since 2024, holds a mid-single-digit million-euro investment in the company.BioBTX’s ICCP technology uses catalytic pyrolys..

Next Story
Real Estate

Awfis Q1 FY27 PAT Jumps 140% as Revenue Rises 27%

Awfis Space Solutions reported a 140 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 240 million for Q1 FY27, compared with Rs 100 million in the corresponding quarter last year.Revenue from operations increased 27 per cent to Rs 4.25 billion from Rs 3.35 billion, while EBITDA rose 28 per cent to Rs 1.62 billion. EBITDA margin improved to 38.2 per cent from 37.8 per cent. Profit before tax increased 135 per cent to Rs 240 million.The company's co-working business recorded 27 per cent year-on-year growth, supported by demand from enterprises, Global Capability Centres (G..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement