J Kumar Infraprojects Set To Win Rs 2,360 Crore Vadhvan Port Link
PORTS & SHIPPING

J Kumar Infraprojects Set To Win Rs 2,360 Crore Vadhvan Port Link

J Kumar Infraprojects is poised to secure an Rs 2,360 crore contract from the National Highways Authority of India to build a 32.18 km expressway linking Tawa Village on NH 48 to the upcoming Vadhvan Port in Maharashtra. The value of Rs 2,360 crore converts to about Rs 23,600 million (mn) or Rs 23.6 billion (bn), and the award follows completion of land acquisition for the road link. The contract is for engineering, procurement and construction in the EPC mode.

The project will start as a four-lane expressway with provisions to expand to eight lanes, and all structures, bridges and tunnels will be built to eight-lane specifications from the outset to allow future scaling. The expressway is intended to open ahead of the port so initial traffic is expected to be minimal. The route runs for 32.18 km and will improve connectivity to the western Maharashtra coast.

J Kumar Infraprojects submitted the lowest bid, six point six seven per cent below the National Highways Authority of India estimate of Rs 2,528.76 crore, which is about Rs 25,287.6 million (mn) or Rs 25.29 billion (bn). The project was initially planned under a build, operate and transfer toll model but was shifted to the EPC mode on account of low projected traffic during the early years. Officials assessed that the toll model may not be feasible until the port begins operations. The change to EPC is intended to allow the expressway to be delivered without dependence on early traffic flows.

The Cabinet approved the port project on 19 June 2024 and delegated authority to the Ministers of Road Transport and Finance to decide the execution mode, following recommendations by appraisal bodies. A meeting chaired by the Union Minister on nine December 2024 concluded that the road should be deliverable now and monetised later, with plans to monetise the corridor under a toll, operate and transfer arrangement once traffic grows with port development. The approach is expected to support timely opening of the expressway and future scalability.

J Kumar Infraprojects is poised to secure an Rs 2,360 crore contract from the National Highways Authority of India to build a 32.18 km expressway linking Tawa Village on NH 48 to the upcoming Vadhvan Port in Maharashtra. The value of Rs 2,360 crore converts to about Rs 23,600 million (mn) or Rs 23.6 billion (bn), and the award follows completion of land acquisition for the road link. The contract is for engineering, procurement and construction in the EPC mode. The project will start as a four-lane expressway with provisions to expand to eight lanes, and all structures, bridges and tunnels will be built to eight-lane specifications from the outset to allow future scaling. The expressway is intended to open ahead of the port so initial traffic is expected to be minimal. The route runs for 32.18 km and will improve connectivity to the western Maharashtra coast. J Kumar Infraprojects submitted the lowest bid, six point six seven per cent below the National Highways Authority of India estimate of Rs 2,528.76 crore, which is about Rs 25,287.6 million (mn) or Rs 25.29 billion (bn). The project was initially planned under a build, operate and transfer toll model but was shifted to the EPC mode on account of low projected traffic during the early years. Officials assessed that the toll model may not be feasible until the port begins operations. The change to EPC is intended to allow the expressway to be delivered without dependence on early traffic flows. The Cabinet approved the port project on 19 June 2024 and delegated authority to the Ministers of Road Transport and Finance to decide the execution mode, following recommendations by appraisal bodies. A meeting chaired by the Union Minister on nine December 2024 concluded that the road should be deliverable now and monetised later, with plans to monetise the corridor under a toll, operate and transfer arrangement once traffic grows with port development. The approach is expected to support timely opening of the expressway and future scalability.

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