SVEC Constructions set to bag interchange contract

SVEC Constructions set to bag interchange contract

The Hindu

It will develop and operate the interchange leading to the Bangalore International Airport at Devanahalli

# The Rs. 45-crore project will be developed on the BOT model
# Meeting in Delhi on Wednesday to discuss project

Bangalore: Hyderabad-based SVEC Constructions Ltd. is set to bag the contract to develop and operate the trumpet-shaped interchange leading to the Bangalore International Airport coming up at Devanahalli.

SVEC Constructions quoted the lowest semi-annual annuity amount when the financial bids were opened recently, a senior official with the Union Ministry of Road Transport and Highways told The Hindu here on Friday. The other bidders were Gammon India Ltd.-GIPL consortium, Ranjit Constructions and Kalpataru Power Transmission Company.

The Rs. 45-crore project will be developed on the build, operate and transfer (BOT) model using the annuity format wherein the private operator will be paid a certain amount every six months (annuity) for operating and maintaining the interchange according to the standards specified in the concession agreement.

Top-level meeting

The chairman of the National Highways Authority of India (NHAI) has called a top-level meeting with representatives of the State Government and Bangalore International Airport Ltd. (BIAL) in Delhi on September 20 to discuss the project. Since the project involves multiple entities, a memorandum of understanding will be signed between the NHAI, the State Government and BIAL for development of the interchange with private sector participation.

"The September 20 meeting will discuss all outstanding issued relating to the project, including land, and will come to a conclusion on the agency that would pay the annuity amount to the private entity which is awarded the contract," the official said.

Proposal put on hold

Meanwhile, the Union Government has put on hold a proposal mooted by the State Government to declare about 7,000 km of State highways as national highways.

"We are not taking up the proposal submitted by the Karnataka Government for converting 7,000 km of State highways into national highways until we complete the ongoing plan to upgrade 66,000 km of national highways," Union Minister of State for Road Transport and Highways and Shipping K.H. Muniyappa told The Hindu here on Friday.

A cash-strapped State Government came up with the proposal to pass the burden of upgrading and developing these highways on to the Centre.

Mr. Muniyappa disclosed that the NHAI has received financial bids from Soma Constructions and Navyug Constructions for developing the 20-km highway stretch between Bangalore and Nelamangala on BOT direct tolling basis at an estimated cost of Rs. 445 crore. "The bids received are under evaluation. A note for approval of the newly constituted Public-Private Partnership Projects Appraisal Committee has been submitted and further action will be taken after its approval," he said.