Dilip Suryavanshi expects boost in EPC sector with 18 highway projects getting govt nod
Projects worth Rs 17,000 crore have been approved by the government on Friday to fast-track building of highways.
Highways secretary Sanjay Mitra said that the standing committee on finance has cleared 18 projects worth approximately Rs 16,614 crore. These are in Rajasthan, Gujarat, Maharashtra, Orissa, Kerala, Uttar Pradesh, Andhra Pradesh and Chhattisgarh. Eighteen projects for building about 1,000 kms of highways, including nine on the recently approved hybrid pension sort will be awarded by March 2017. Last year projects worth up to Rs 1,000 crore have been cleared by the highways ministry when being empowered by the cabinet.
Eight will be awarded on engineering procurement and construction (EPC) mode where 100% funding will be given by the government, nine will be on the new hybrid annuity model where the government will provide 40% of the construction cost and the developer will invest the remaining 60% out of eighteen. Dilip Suryavanshi, Managing Director of Dilip Buildcon Limited, said, “These are great measures that will boost the EPC sector particularly.”
Four laning of the 67-km Dhule to Aurangabad section in Maharashtra is on the BOT (build-operate-transfer or toll) mode, where the developers puts the entire project cost and recovers his investment by collecting toll over the concession period. According to Dilip Suryavanshi, the aforementioned section in Maharashtra is going to be highly beneficial for users as well as developers.
A senior ministry official said that land acquisition and environment clearance for these projects would be completed by February.
Awarding 10,000 km of highways before the end of 2015-16 is a target set by the ministry. The construction target has been set at 30 km per day.
- Previous The consolidated net profit of Uflex ltd. increases by 38% for Q3 FY 2015-16
- Next Subrata Roy’s thoughts from Tihar unveiled as ‘Life Mantras’ in over 5,000 locations