LANCO bags two toll road projects in Karnataka

August 4, 2008

LANCO Kondapalli Power Pvt Ltd, a subsidiary of LANCO Infratech Ltd, has bagged the contract for construction and operation of two road projects in Karnataka on Build, Operate and Transfer (BOT) basis under the National Highways Development Project (NHDP) Phase III.

The company has formed two Special Purpose Vehicles (SPVs) – LANCO Hoskote Highways Pvt Ltd and LANCO Devihalli Highways Pvt Ltd for undertaking the projects. The concession agreements for the projects have been signed with the National Highways Authority Ltd. The two road projects are the 81 km Bangalore-Hoskote-Mudbagal stretch on National Highway 4 and 82 km Neelamangla – Devihalli stretch on National Highway 48. The project involves six laning of 16 km stretch and four laning of the remaining stretches. The total project cost is estimated at Rs 1,006 crore. The concession periods are 20 and 25 years for the two projects respectively, including 30 months of construction period. The contracts have been awarded through a competitive bidding process.

LANCO Group is one of the fastest growing corporate entities in India. LANCO has more than two decades of experience operating in the core sectors of Power Generation, Power Trading, Realty, Engineering and Construction, Information Technology and Manufacturing. At present, the power portfolio includes an operating capacity of 518 MW and additional capacities under construction aggregating to more than 3,200 MW.  The Construction and EPC division of the company is executing various orders worth more than Rs 7,500 crore.  LANCO is also developing LANCO Hills, one of the largest integrated township properties in Hyderabad, which will have a developed area of more than 30 million square feet and one of the tallest residential towers in the world.  The development of the property is estimated to cost Rs 5,500 crore.



April 23, 2008

The status of Chandigarh-Kiratpur, Amritsar-Pathankot and Jalandhar –Amritsar stretches are as under:

(i) Chandigarh-Kiratpur stretch: The Chandigarh-Kurali section is of 28.6 km length. Out of this, the stretch from km 0.0 to km 11.4 is four/six laned. Four laning from km 11.4 to 15.4 has been sanctioned for Rs.13.51 crore on 31.03.2008 by Ministry. Four laning of the remaining section from km 15.4 to 28.6 is to be taken up under National Highways Development Project (NHDP) Phase – III. The 4 – laning of Kurali-Kiratpur section has been awarded in June 2007 on BOT basis and the work is likely to be completed by June 2010.

(ii) Jalandhar-Amritsar stretch : The Detailed Project Report (DPR) to take up the work of four- laning on Build, Operate and Transfer (BOT) toll basis for Jalandhar-Dhilwan section has been updated by the consultant. The bidding process shall be started after Public Private Partnership Appraisal Committee (PPPAC) clearance. The four – laning of Dhilwan to Verka Chowk, Amritsar section has been started in May 2006 and the work is targeted to be completed by November 2008.

(iii) Amritsar-Pathankot Stretch : The Detailed Project Report (DPR) preparation for four laning of this stretch is in advance stage of completion. The bidding process shall be started after Public Private Partnership Appraisal Committee (PPPAC) clearance.

This information was given by the Minister of State for Shipping, Road Transport and Highways, Shri K.H. Muniyappa in a written reply in the Lok Sabha today.



April 23, 2008

The following stretches under National Highways Development Project (NHDP) Phase-VI have been identified for implementation.  

S. No.

Name of Expressway

Length (Km)

Status of work




The consultant for fixing of alignment has been appointed.




The proposal from the consultants for fixing of alignment has been invited.







            The Delhi-Jaipur stretch was one of the stretches announced by the Finance Minister in his budget speech for the FY 2008-09 for construction of Expressway.  The project was to be finally selected for implementation on the basis of traffic volume.       However, in view of the upgradation of existing alignment to six lane under NHDP Phase-V, which will be sufficient to cater to the traffic volume for another 10-12 years, the new Expressway is not envisaged, at present.

      NHDP Phase VI is targeted for completion by December 2015. 

This information was given  by the Minister of  State for  Shipping, Road Transport and Highways, Shri K.H. Muniyappa in a written reply in the Lok  Sabha today.


NHAI terminates road contract awarded to MP-owned company

April 21, 2008

Parliament member Samba Siva Rao’s Progressive Constructions was unable to build 55km road

New Delhi: Under pressure for poor results and with the government seeking an overhaul of its management team, the National Highways Authority of India, or NHAI, the country’s road regulator, has begun axing contracts for non-performance, including those awarded to companies with powerful political connections.

These troubled contracts are partially to blame for holding up completion of the so-called Golden Quadrilateral that would connect four regions of India through 5,846km of four-laned highways. Within the last month, NHAI has cancelled two contracts and encashed their bank guarantees.

The more high profile of the two was the termination of a contract awarded to a company run by the family of a Congress party member of Parliament, Kavuru Samba Siva Rao.

“These contracts had to be terminated because they had defaulted,” said NHAI chairman N. Gokulram, refusing to discuss the matter further.

As many as eight contracts under the Golden Quadrilateral have already been terminated between 2006 and 2007. Of the 5,846km of highways that were to be four-laned under the project, NHAI is yet to complete 206km.

Hyderabad-based Progressive Constructions Ltd, which was set up by Rao, a four-term MP, and is managed by his son Bhaskar Rao, was not able to complete the 55km stretch even four years after the initial deadline expired. Consequently, NHAI terminated the contract and encashed a bank guarantee of around Rs50 crore submitted by the company when it was awarded the Sunakhala–Ganjam highway project.

NHAI officials, who did not wish to be identified, insist that this is just the beginning and it “would spare no one regardless of their political connections”.

A dozen contracts, whose performance is holding up completion of the Golden Quadrilateral project which was started by the National Democratic Alliance government in 1998, but is yet to be completed, are being scrutinized by NHAI.

According to officials in the ministry, Progressive was awarded the contract in 2001. The highway work was to be completed by 2004. When the contract was terminated last month, the company was only half-way done, with the project valued at Rs163 crore.

“I am not looking after these things (management). My son Bhaskar Rao runs the company,” said Rao, adding that there was also a feeling among contractors that “all was not well with NHAI.”

While the MP declined to elaborate the reasons for not being able to proceed with the project, he maintained that problems faced by the contractors, such as land acquisition, threat from Naxalites and law and order issues, have not been addressed.

“NHAI could not hand over the land within the time frame and in the sequence as was stipulated in the contract. This has affected the project,” insisted a senior executive with Progressive.

NHAI has also terminated the contract of Prakash-Atlanta, a joint venture between Prakash Building Associates Ltd and Atlanta Infrastructure Ltd, for failing to complete the Lucknow bypass on time. An NHAI officer said the regulator had also encashed the bank guarantee of Rs28 crore from the company.

However, the company says that it was its contractor who had initiated the termination proceedings. In a 14 March letter addressed to the NHAI chairman and the consulting engineer for the project, a copy of which was viewed by Mint, the contractor requested that the contract be terminated and NHAI provide compensation.

The letter said the contract was supposed to be completed in 30 months by August 2004. The contractor, however, alleged that a number of problems, including land acquisition and variance in scope of work, dogged the project.

“Another problem is the quality of the detailed project reports,” said an official with the company, who did not wish to be quoted. The project went to an arbitration tribunal following disputes over variation in costs of the project.

“Now it has become crystal clear to us that the policy of NHAI is to use the contractor as a resource and exhaust him completely before termination of the contract wrongfully and illegally, and further crippling the contractor by making demands on securities and bank guarantees,” the letter stated.

The letter also said the contractor filed two separate termination notices to NHAI. Each time, the contractor was persuaded to continue work on the project.

“On the one side, the government is insisting on completion. On the other side, bankers and shareholders are asking for results. So, any delay in finalizing the bills or making payments from government side may have lot of impact on the promoters credibility with the bankers and also with the government and of course the investors,” said Murali M., director general of the National Highways Builders Federation.


National highway projects underway in the north eastern region

April 17, 2008

The Border Roads Organisation, National Highways Authority of India and state public works departments (PWDs) will execute national highway (NH) project works in the north-eastern states as per the lump sum amount allocated by the ministry.

Responding to a query in the Lok Sabha, minister of  state for  shipping, road transport and highways  K H  Muniyappa said, the national highway (NH) project works are underway in the north eastern region (NER) of India against lump sum amount allocated by the ministry. The Border Roads Organisation, National Highways Authority of India and state public works departments (PWDs) will execute the special projects in Sikkim and Tripura fully and in other states partly as per government allocations

The annual plan for the special programmes has not been finalised.

The state public works departments of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram and Nagaland are also engaged to execute NH works in these states on the basis of sanctions accorded by the ministry in successive annual plans.

The plan for the  development of the national highways in the 11th Five-year Plan has yet to be finalised by the government. The amount of works for development of national highways approved by the ministry during 2007-08 (1st year of 11th plan) and the amount of works included in the list of works prepared by the ministry for sanctions during 2008-09 for the six states to be executed by the state PWDs is:

(Rs in crore)

Amount of sanctions accorded during 2007-08

Amount of works listed for sanctions during 2008-09

Arunachal Pradesh 0.00 30.00
Assam 112.12 292.00
Manipu 37.97 99.00
Meghalaya 43.87 264.00
Mizoram 21.95 119.50
Nagaland 47.08 50.50

The expenditure incurred on the development of national highways in north-east region during 10th Plan was  Rs2,383.93 crore. In addition, the expenditure on development of national highways has also been incurred on special accelerated road development programme in north east (SARDP-NE). The expenditure under SARDP-NE during 2006-07 is Rs91.65 crore. The budget of 2008-09 is yet to be passed by the Parliament.

Four-lane Guwahati bypass was completed during the10th Plan. Karimganj,  Nagaon, Daboka, Lanka, Lumding, Maibang, Udharband, Mahour, Baihata and Agartala  bypasses are under construction and bypasses of Dibrugarh, Tinsukhiya, Makum, Dum Duma, Rupai, Digboi, Margreita, Ledo and North-Lakhimpur in Assam and Shillong, Jowai and Tura bypasses in Meghalaya and Dimapur and Kohima bypasses in Nagaland and Gangtok bypass in Sikkim are in Planning and Survey & Investigation stage.

Time frame for works of double laning, 4-laning and construction of bypasses approved during 2007-08 is given below:

The list of  works for double laning, four laning and bypasses approved under Annual Plan 2007-08

Assam: Widening of 8 km of existing intermediate lane of NH-37 from 563/0 to 571/0 to double lane by March 2010

Manipur: Widening to 4-lane from km 323.330 to 326.660 of NH-39 by March 2010

Meghalaya: Widening of single lane to two lane from km 21/870 – 43/00 0f NH-51 by March 2010

Nagaland: Widening to 2-lane with geometric improvement from km 17.00 to 23.00 of NH-61 by March 2010 and widening to 2-lane with geometric improvement from km 33.00 to 40.00 of NH-61 also by March 2010.


Road expansion along Singjamei side on NH-39

April 17, 2008

Road expansion along Singjamei side on NH-39 

Non-utilisation of funds curse continues to haunt

Imphal, April 17: The work on upgrading the National Highway-39 stretch from Moirangkhom to Singjamei Bazar to a four-lane has been stalled as the Ministry of Shipping, Road Transport and Highways, Government of India is hesitant on releasing the required fund in view of the failure to utilise the fund sanctioned earlier for various works.

The Ministry also seems to see no point or urgency in converting the road stretch to a four-lane in view of the existing traffic volume along the said National Highway.

Speaking to The Sangai Express an official source in the Works Department of the State Government, said that the Government of Manipur has spent Rs 11.45 crores till date in giving compensation to the owners of the land and buildings that were demolished for the purpose of expansion and upgradation of the road from Moirangkhom to Singjamei Bazar to a four-lane.

The source disclosed that for implementing the task of upgrading the road stretch to four-lane, the Works Department had submitted a DPR of Rs 6 crores to the Ministry of Shipping, Road Transport and Highways for carrying out the task from Singjamei Parking to MU Main Gate during 2006-07 besides another DPR of Rs 18.5 crores for the task from Ist MR Gate to Singjamei Parking.

The DPRs of the Works Department have been included in the work programme of the annual plan of the Ministry.

But inspite of several reminders, the Ministry has not sanctioned the required fund, thus putting the proposal of upgrading the road stretch to four-lane to a grinding halt, the source said.

Nonetheless, in the month of January this year, the Ministry gave its approval for sanctioning Rs 8 crores for taking up the work from Singjamei Parking to MU Main Gate.

Accordingly, the process for inviting tender is already underway, the source informed.

As for the road upgradation work from Ist MR Gate to Singjamei Parking, the required fund is yet to be sanctioned by the Ministry, the source said, adding that the State Public Works Department would be exerting pressure on the Ministry for sanctioning the fund.

In connection with the refusal of the Ministry to sanction the required fund for upgrading the road from Moirangkhom to MU Main Gate to four-lane, the source disclosed that the Ministry has conveyed verbally to the officials of the Works Dept that conversion of the NH stretch into four-lane is not necessary in consideration for the current traffic volume along the said route.

On top of this, the Ministry has also made it clear that the fund sanctioned earlier for development of the National Highway stretch from Maram to Moreh should be utilised properly first, the source disclosed.

Conceding that the fund sanctioned by the Ministry during 1996-1997 for construction/repairing of the bridges at Pallel and Lokchao has not been able to utilise till date, the source, however, claimed that most of the works that have been sanctioned by the Ministry during 2003-04 are nearing completion.


Way paved for Ghaziabad expressway

April 17, 2008

GHAZIABAD/GREATER Noida: The Ghaziabad Development Authority (GDA) has finally decided to complete work on a number of roads, including the 12-kilometre expressway linking Greater Noida to NH-24 in Ghaziabad.

While 10.5 kilometres of the 12-kilometre expressway having been completed five years ago, a 1.5-kilometre stretch on NH-24 had been encroached upon. Now, GDA vice-chairman SK Dwivedi said compensation and alternative plots of land will provided to residents along the route to clear the area in order to complete the expressway.

Meanwhile, the GDA has decided to go ahead with plans to build a six-lane expressway linking the Hindon bridge at Meerut Road and the Greater Noida-Ghaziabad expressway. The GDA and NHAI have already decided to widen NH 24 from UP Gate to Lal Kuan.


Faridabad-Badarpur flyover to just beat Games deadline

April 8, 2008

With the authorities rushing up to complete all the projects related to road infrastructure before Commonwealth Games in 2010, commuters taking the Badarpur-Faridabad road can expect a smooth ride on this stretch by September 2010.

According to sources in the National Highways Authority of India (NHAI), the Badarpur-Faridabad 6-lane elevated highway at a cost of Rs 340 crore is expected to be completed by September 2010. NHAI has already shortlisted five bidders for the 4.4 km signal-free road and the work is likely to be awarded by this June.

This proposed elevated corridor, to be built on BOT basis, will be a crucial link between Delhi and Faridabad. The proposed road will start from near NTPC, Badarpur and will end near Sector-37 crossing in Faridabad. The entire elevated corridor has five major intersections (two in Delhi and three in Haryana) namely NTPC junction, Sarai junction, Jaitpur junction, Mehrauli junction and Sector-37 junction.

Frequent traffic jams are reported from this road due to heavy traffic and encroachments and on average commuters spend over half an hour to cross this stretch on NH-2.

The elevated corridor will do away with all the seven junctions on this stretch. There will be three subways on the road for pedestrians.

The commuters using the elevated road will have to pay toll tax, said an NHAI official, adding that there will be two toll gates – one at Delhi-Faridabad border and the other near Sector-37 in Faridabad. The toll rates will be announced when the stretch gets operational, said the official. However, commuters using the ground road will not pay any toll. According to the project plan, the concessionaire will construct and maintain the entire project including the ground level roads for the period of 20 years.

While the NHAI had prepared the detail project report way back in 2004, it got delayed due to various “political” and “procedural reasons”.

“Haryana government gave the clearance in 2006, but Delhi government and Delhi Urban Art Commission (DUAC) cleared it only in January this year. But now there will be no extension to the deadline of the project since everything has been cleared and the required land is acquired,” said an NHAI official.


Haryana govt inks MoU with NHAI for construction of Delhi-Rohtak six laning road

April 8, 2008

CHANDIGARH: Haryana  Government has signed a Memorundum of Understainding (MOU) with National Highway Authority of India (NHAI)for construction of six laning of Delhi-Rohtak road costing Rs 487 crore and it would be completed within next 30 months.

This was revealed by the Haryana PWD B&R Minister, Capt. Ajay Singh Yadav while interracting with the mediapersons after flagging of Mobile Highway Maintenance Van here Tuesday.

Capt. Yadav said that this prestigious Delhi-Rohtak project of six laning would be 63 km long and would have 16 fly over and three railway over bridges. He said that 16 km long bypass would be
constructed at Bahadurgarh and 23 km long bypass would be constructed at Rohtak.

The Minister said that the department had executed a record  number of works under National Highway and Central Road Fund Schemes.

He said that Rs 120 crore had been spent on NABARD works besides a sum of Rs 450 crore had been sanctioned during last year by the Ministry of Rural Development under the PMGSY Scheme. While during the previous regime a sum of Rs 100 crore was incurred within a span of five years
under PMGSY scheme.

Capt. Yadav said that similarly under the National Capital Region Planning Board a sum of Rs 1200 crore had been sanctioned while only a sum of Rs 65 crore were incurred during the previous regime under NCR schemes.

He said that during next two years, a sum of Rs 2000 crore would also be incurred for improving the infrastructure in the State under the Rajiv Gandhi Road Infrastructure scheme. This programme was
launched in the State on October 7, 2007 by the UPA Chairperson,  Sonia Gandhi from Dadri district Bhiwani.

The Minister said that NHAI would incur a sum of Rs 5000 crore in the State for strengthening the road infrastructure and a number of works were in the pipeline. He said that  a sum of Rs 588 crore would be incurred on Gurgaon-Nuh-Alwar road and Hodal-Nuh-Patudi road.

He maintained that a sum of Rs 1500 crore was required in the State during next two year to bring the road into a proper shape.

Yadav said that department had decided to procure these funds from various sources which included a sum of Rs 400 crore from National Capital Region Planning Board, Rs 250 crore from NABARD, Rs
350 crore from PMGSY and the rest money would be spent from the state resources.

He said that the department had also incurred a sum of Rs  400 crore for the construction of various government buildings during last year which was more than the total amount spent on construction of public building during previous regime.

He said that a number of bypasses which included Rewari, Sirsa, Kaithal and Dadri were being constructed. He revealed that Nirman Sadan was being constructed in sector 33, Chandigarh and it wouldbe constructed in two phases, the Chief Architect office would be ready within next three months while the office of PWD B&R would be ready by December end.

Capt. Yadav said that the main aim of starting Mobile Highway Maintenance Van to enable carrying out maintenance work of patch work on Highways besides these vans would be eco-friendly, pollution free, economical and very easy to handle. In the first phase, such 10 mobile
vans would come in operation from Wednesday.

The Commissioner and Secretary PWD B&R, K.K. Jalan said that Panipat flyover was almost ready and the final inspection of the same would be made on April 9.

He said that the testing for the same had already been completed and it would be opened for the public in the last of this month or in the first week of May. He said that a commuter had to pay a sum of Rs 20 as toll tax. He said that Panipat over bridge had been completed 8 months before the scheduled time.

Engineer-in-Chief, Mahesh Kumar said that about 12,000 crore would be spent by the Haryana Government in maintenance, construction and repair of roads and bridges during the tenure of present government. Out of this, a sum of Rs 4500 crore would be incurred by the NHAI and the rest would be incurred by the State Government. He said that a total sum of Rs 5000 crore was required to make six laning road from Dehi to Chandigarh.

On the occasion Chief Engineer, Roads, Mahavir Singh and Chief Engineer, Buildings, G.D. Goel and senior officers of the department were also present.


State agency offers ‘permanent’ solution

April 8, 2008

A perpetual or permanent road is a long-life bituminous road that needs no maintenance, is of superior quality and ideal for heavy-traffic corridors

Bangalore: Bumpy rides on Indian roads may soon be a thing of the past, if the Central Road Research Institute, or CRRI, has its way. The institute is compiling a report on its research on introducing perpetual roads— that last as long as 30 years without cracking—in the country.

Perpetual roads are hugely popular in the US and China.

“Perpetual roads are the future for important roadways like the national and state highways where maintenance is a huge concern and need to be refurbished because of high traffic volume,” said Sunil Bose, deputy director of pavements at CRRI, which has just completed laboratory tests on perpetual roads in India.

Once the report is complete by July, the New Delhi-based institute wants to collaborate with the National Highways Authority of India, or NHAI, and run a pilot project on a stretch of the National Highways Development Project (NHDP).

A perpetual or permanent road is a long-life bituminous road that needs no maintenance, is of superior quality and ideal for heavy-traffic corridors such as the national highways, said Bose. It has three layers: a wear-resistant top layer, an intermediate layer and a fatigue-resistant base layer, he said.

In India, important roads are overloaded with traffic and therefore suffer harsh weathering, leading to cracks and potholes. Entire structures have to be rebuilt every four-five years at high cost. According to NHAI data, India’s 66,590km of national highways, for example, constitute 2% of its road network but carry 40% of the traffic.

Nirmaljeet Singh, technical member at NHAI, said despite good construction, NHDP roads invariably deteriorate due to the heavy traffic and have to be relaid every five years.

Road experts say that in perpetual roads, the layer of bitumen, a petroleum product that is used to lay roads, is 25-30% thicker than the usual 900mm, and of better quality, giving the roads a stronger cover.

“We are open to such research but it needs to be tested and seen whether it suits our roads and can be effectively maintained in the long run,” said Singh.

These roads are also less expensive in the long term, says CRRI. Bose said that while the cost of building 1km of any NHDP road is around Rs4.2 crore, a perpetual road would cost 25% more. However, these roads would last much longer, recovering the additional costs.

“Perpetual roads are a boon for the economy because goods are delivered on time and there is less fuel wastage because of reduced obstruction in traffic movement. And once you construct these roads, they don’t deteriorate,” said B.B. Pandey, emeritus professor of civil engineering at the Indian Institute of Technology, Kharagpur.


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