IRB, Adani bid premium on BOT road projects in Bengal
ROADS & HIGHWAYS

IRB, Adani bid premium on BOT road projects in Bengal

The two build-operate-transfer (BOT) toll six-lane highway projects in West Bengal—Panagarh to Palsit and Palsit to Dankuni━have received bids from Adani Group and IRB Infrastructure.

Both the projects received bids from four companies. PNC Infratech and GR Infra projects were the two other bidders. NHAI is unlikely to announce the letter of agreement (LoA) soon because the model code of conduct is in place in the state.

Adani Group has offered to pay the highest 11.5% premium of the capital cost of the Panagarh-Palsit stretch. IRB Infrastructure has offered to pay the highest 10.8% premium for the Palsit to Dankuni stretch.

Last year, NHAI had attempted to bid these two stretches under the BOT (Toll) model but annulled the plan subsequently for the purpose of getting an adequate number of bidders.

The two projects for which bids have been invited are part of the Bharatmala project, under which the NHAI is mandated to build 34,800 km national highway stretches.

The National Highways Authority of India (NHAI) had recently invited bids under the revised, investor-friendly build-operate-transfer (BOT-toll) model for the six-laning of the two stretches in West Bengal—Panagarh to Palsit (67.75 km) and Palsit to Dankuni (63.83 km), on NH-19. Private investors have offered to pay a premium for both projects.

From a high of 96% of its all-project awards in 2011-12, NHAI's project awards through the BOT (toll) route came to nought in the last two fiscals. Coupled with higher project awards, this resulted in higher reliance on conventional fully state-funded EPC projects and higher accumulation of debt for NHAI, which stood at Rs 2.7 lakh crore as of November 2020.

The centre recently revised model concession agreement (MCA) for build-operate-transfer (BOT-toll) projects, under which the revenue potential of a project would be reassessed every five years during the concession period as against every 10 years now. The concession period will be extended early in the contract's tenure, adding to the certainty of cash flows.

To protect investor interest in BOT-toll projects, the growth of which will help curtail NHAI's rising debt and find non-government, non-debt resources for highway development, the government will also guarantee to the developers that a BOT-toll project will be awarded only after NHAI taking possession of 90% of the requisite land, similar to Hybrid Annuity Mode (HAM) projects. In the case of fully government-funded EPC projects, the award is executed only after 90% of the land is acquired.

Image Source


Also read: Companies bid for BOT-toll highway project in WB

Also read: NHAI to award Rs 72k cr highways projects by March

The two build-operate-transfer (BOT) toll six-lane highway projects in West Bengal—Panagarh to Palsit and Palsit to Dankuni━have received bids from Adani Group and IRB Infrastructure. Both the projects received bids from four companies. PNC Infratech and GR Infra projects were the two other bidders. NHAI is unlikely to announce the letter of agreement (LoA) soon because the model code of conduct is in place in the state. Adani Group has offered to pay the highest 11.5% premium of the capital cost of the Panagarh-Palsit stretch. IRB Infrastructure has offered to pay the highest 10.8% premium for the Palsit to Dankuni stretch. Last year, NHAI had attempted to bid these two stretches under the BOT (Toll) model but annulled the plan subsequently for the purpose of getting an adequate number of bidders. The two projects for which bids have been invited are part of the Bharatmala project, under which the NHAI is mandated to build 34,800 km national highway stretches. The National Highways Authority of India (NHAI) had recently invited bids under the revised, investor-friendly build-operate-transfer (BOT-toll) model for the six-laning of the two stretches in West Bengal—Panagarh to Palsit (67.75 km) and Palsit to Dankuni (63.83 km), on NH-19. Private investors have offered to pay a premium for both projects. From a high of 96% of its all-project awards in 2011-12, NHAI's project awards through the BOT (toll) route came to nought in the last two fiscals. Coupled with higher project awards, this resulted in higher reliance on conventional fully state-funded EPC projects and higher accumulation of debt for NHAI, which stood at Rs 2.7 lakh crore as of November 2020. The centre recently revised model concession agreement (MCA) for build-operate-transfer (BOT-toll) projects, under which the revenue potential of a project would be reassessed every five years during the concession period as against every 10 years now. The concession period will be extended early in the contract's tenure, adding to the certainty of cash flows. To protect investor interest in BOT-toll projects, the growth of which will help curtail NHAI's rising debt and find non-government, non-debt resources for highway development, the government will also guarantee to the developers that a BOT-toll project will be awarded only after NHAI taking possession of 90% of the requisite land, similar to Hybrid Annuity Mode (HAM) projects. In the case of fully government-funded EPC projects, the award is executed only after 90% of the land is acquired. Image Source Also read: Companies bid for BOT-toll highway project in WB Also read: NHAI to award Rs 72k cr highways projects by March

Next Story
Infrastructure Energy

South West Pinnacle Wins Rs 30 Cr Oman Mining Contract

South West Pinnacle Exploration Ltd has secured a Rs 30 crore contract from Minerals Development Oman (MDO) for mining exploration in concession areas 12B and 13.The two-year project will be carried out via Alara Resources LLC, a JV in Oman. MDO, backed by Oman’s investment authorities, focuses on monetising mineral wealth.The contract covers copper, gold, and chromite and highlights South West Pinnacle’s growing footprint in international exploration and mining services. ..

Next Story
Equipment

Godrej GEG Boosts Intralogistics with AI and Green Tech

Godrej Enterprises Group (GEG) is revolutionising warehouse and factory logistics through its Material Handling Equipment and Storage Solutions arms by integrating AI, IoT, and automation.With 20–25% market share and 85% local sourcing, GEG champions Atmanirbhar Bharat and sustainability. The Chennai plant, a green manufacturing leader, uses RoHS-compliant materials and has slashed energy consumption by 60%.GEG serves e-commerce, FMCG, retail, and cold chains with high-performance racking and electric forklifts. Upcoming IoT-enabled forklifts and telematics solutions aim to improve speed, sa..

Next Story
Infrastructure Urban

Amit Shah Inaugurates Key Projects Across Gujarat

Union Home Minister Amit Shah inaugurated and laid the foundation stone for various projects in Gujarat’s Panchmahal district and Ahmedabad.In Godhra, he inaugurated the Center of Excellence building, sports complex, reservoir, and Miyawaki plantation. In Ahmedabad, he unveiled a new cooperative complex in Adaroda village and a primary school in Juwal.These projects, under the Model Co-op Village scheme, aim to boost education, sustainability, and rural development across the state. ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?