UP govt outsources 1st road project to private firm under new model

28 Apr 2022 CW Team

The Uttar Pradesh (UP) government has outsourced its first road construction project to a private firm under a new model, allowing the state to make money through toll collection.

The UP government approved a proposal of the UP State Highways Authority (UPSHA) to award the widening work of State Highway 46, linking Pukhrayan, Bindki, and Ghatampur, to an Indore-based private firm Prakash Asphalting & Toll Highways.

While this is the fourth project to a private firm for development, unlike other projects, it is not awarded on a public-private partnership (PPP) model.

A maximum viability gap funding of up to 40% is allowed to make projects feasible for private parties under the PPP model. With the new model, the UP government, instead of providing funding to the company, will be able to generate money through toll collections.

In the recently devised model, the company, after finishing the project, will be sharing 1% of the total toll collection with the UPSHA.

Though the share is nominal, it is a big accomplishment for the Yogi government. The UP government had been working for the last four years to give a makeover to the important state highway since a lot of fatalities are reported from here, a senior UPSHA official told the media.

The private firm has agreed to invest Rs 1,136.45 crore to broaden the highway from two-lane to four-lane.

Further, the company will provide proper road safety measures at three locations, where the state highway intersects three national highways to prevent motorists from speeding.

The revenue will be shared with the UP government after 3351 days, while UPSHA will be handed over the highway after two decades of function.

The Madhya Pradesh (MP) based private players will also be promoting the movement to neighbouring districts by improving the quality of infrastructure in the concerned area.

Image Source

Also read: Dwarka Expressway to transform Gurgaon, NCR's realty landscape

The Uttar Pradesh (UP) government has outsourced its first road construction project to a private firm under a new model, allowing the state to make money through toll collection. The UP government approved a proposal of the UP State Highways Authority (UPSHA) to award the widening work of State Highway 46, linking Pukhrayan, Bindki, and Ghatampur, to an Indore-based private firm Prakash Asphalting & Toll Highways. While this is the fourth project to a private firm for development, unlike other projects, it is not awarded on a public-private partnership (PPP) model. A maximum viability gap funding of up to 40% is allowed to make projects feasible for private parties under the PPP model. With the new model, the UP government, instead of providing funding to the company, will be able to generate money through toll collections. In the recently devised model, the company, after finishing the project, will be sharing 1% of the total toll collection with the UPSHA. Though the share is nominal, it is a big accomplishment for the Yogi government. The UP government had been working for the last four years to give a makeover to the important state highway since a lot of fatalities are reported from here, a senior UPSHA official told the media. The private firm has agreed to invest Rs 1,136.45 crore to broaden the highway from two-lane to four-lane. Further, the company will provide proper road safety measures at three locations, where the state highway intersects three national highways to prevent motorists from speeding. The revenue will be shared with the UP government after 3351 days, while UPSHA will be handed over the highway after two decades of function. The Madhya Pradesh (MP) based private players will also be promoting the movement to neighbouring districts by improving the quality of infrastructure in the concerned area. Image Source Also read: Dwarka Expressway to transform Gurgaon, NCR's realty landscape

Technology

28 Oct 2025

Building Faster, Smarter, and Greener!

Backed by ULCCS’s century-old legacy, U-Sphere combines technology, modular design and sustainable practices to deliver faster and more efficient projects. In an interaction with CW, Rohit Prabhakar, Director - Business Development, shares how the company’s integrated model of ‘Speed-Build’, ‘Smart-Build’ and ‘Sustain-Build’ is redefining construction efficiency, quality and environmental responsibility in India.U-Sphere positions itself at the intersection of speed, sustainability and smart design. How does this translate into measurable efficiency on the ground?At U..

Infrastructure Transport

28 Oct 2025

Smart Roads, Smarter India

India’s infrastructure boom is not only about laying more kilometres of highways – it’s about building them smarter, safer and more sustainably. From drones mapping fragile Himalayan slopes to 3D machine-controlled graders reducing human error, technology is steadily reshaping the way projects are planned and executed. Yet, the journey towards digitisation remains complex, demanding not just capital but also coordination, training and vision.Until recently, engineers largely depended on Survey of India toposheets and traditional survey methods like total stations or DGPS to prepare detai..

Real Estate

28 Oct 2025

What Does DCPR 2034 Mean?

The Maharashtra government has eased approval norms for high-rise buildings under DCPR 2034, enabling the municipal commissioner to sanction projects up to 180 m on large plots. This change is expected to streamline approvals, reduce procedural delays and accelerate redevelopment, drawing reactions from developers, planners and industry experts about its implications for Mumbai’s vertical growth.Under the revised DCPR 2034 rules, buildings on plots of 2,000 sq m or more can now be approved up to 180 m by the municipal commissioner, provided structural and geotechnical reports are certified b..