Rs 1,000-cr highway project in lurch as bidders back out

August 21, 2012

The state government’s ambitious Rs 1,020-crore Bagodara-Dhandhuka-Vallbhipur-Bhavnagar four-lane highway project has hit a dead end as no private company is ready to invest in the PPP project.

The Centre had cleared Rs 204 crore as viability gap funding for the project.

After the Gujarat State Road Development Corporation (GSRDC) issued tenders, 25 bidders came forward and 21 even purchased the required documents. But all of them backtracked and none filed for final bids before the deadline of March 30, 2012.

When GSRDC subsequently called a meeting of bidders to find out the reason for their lack of interest, only two turned up. From the feedback, it transpired that the bidders do not consider this road as a viable project under build-operate-transfer (BoT) basis and wanted the same on annuity basis, an official concerned with the project said.

“The GSRDC informed the state government that this happened because there is another shorter route between Ahmedabad and Bhavnagar which is being widened to 10 metres,” the official said, adding the government, however, was keen for the project and had now decided to issue fresh bids.

Meanwhile, the state government’s first-ever 10-lane expressway project between Ahmedabad-Sarkhej-Pipali-Dholera now will be extended till Bhavnagar, covering an additional 45 km of distance.

SOURCE: http://www.indianexpress.com