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Erroneous agreement delays National Highways expansion
A big mistake by the National Highways Authority of India (NHAI) now turned out to be a major obstacle for laying six-lane highway in the district from Nellore to Tada covering a distance of 110 km. An agreement made between the NHAI and the toll agency in 2001 has been causing an obstacle to the much-awaited project. As a result, laying of the six-lane road may not be possible before 2031.
Nellore: A big mistake by the National Highways Authority of India (NHAI) now turned out to be a major obstacle for laying six-lane highway in the district from Nellore to Tada covering a distance of 110 km. An agreement made between the NHAI and the toll agency in 2001 has been causing an obstacle to the much-awaited project. As a result, laying of the six-lane road may not be possible before 2031.
The highway project in the district is implemented through a special purpose vehicle,Swarna Tollways, in which four Malaysian companies such as IJM Corporation, CIDBI, WCT Berhad and Bhumi Highways are involved.
As per the agreement which is for 30 years, if the government wants to call tenders for conversion of six-lane highway, they have to make an advance payment of toll charges for next 15 years after deducting maintenance charges to settle with Swarna Tollways.
In fact, NHAI entered into an agreement on Dec 19, 2000 with a Malaysian Company, CIDBI, and the clause 5 of the agreement authorisedCIDBI to transfer all rights, benefits, interests, duties and obligations to a Special Purpose Vehicle (SPV) to be constituted by CIDBI either solely or jointly with other parties for the purpose of implementing the project and the concession.
The said clause further provided that in such an event, NHAI shall enter into a Concession Agreement with the SPV. On March 27, 2001, a Concession Agreement was entered into between NHAI and CIDBI where under NHAI granted the Concession for a period of 30 years, including the exclusive right, licence and authority to implement the project and the concession in respect of the project highways.
Subsequently, IJM had successfully completed widening and strengthening of two-lane to four-lane between Tada-Nellore from km-110 to km-163.60 in Nellore district.
As it was the Build-Operate-Transfer (BOT) project NHAI has no other option to adhere to the clauses in the agreement even in case of expansion of the highway. So, the highway between Bujabuja Nellore and Tada is having only four-lane and there is no chance for expansion till the Union Government takes a decision.
Swarna Tollway is having three toll plazas in Venkatachalam, Budanam and Sullurpet. The NHAI invited Swarna Tollway to come forward to execute the six-lane work a couple of years ago but reportedly the company had not shown any interest on the project.
Since Nellore-Tada four-lane highway project was the first project in the country under the Golden Quadrilateral Project and the government machinery failed to think about future expansion to six-lane at the time of inking the agreement which made the issue complicated.
“The Union Ministry of Roads and Transportation has to take a decision based on the need for expansion of the highway. But, now, due to tussle between the state and the Centre on the SCS, it would not be possible immediately. So, local politicos have to mount pressure on the Centre for early completion of the project,” said an official from the NHAI.
By P V Prasad
