L&T to develop Odisha road for Rs 1,293 cr
A contract for the project, on a build-operate-transfer (BOT) basis, has already been awarded to the subsidiary of the engineering and construction major L&T by the Odisha government, the company said in a statement.
"L&T IDPL has been awarded a contract by the government of Odisha for developing a road project estimated at a total cost of Rs 1,293 crore," it said.
The road project issued by the Odisha Works Department, will be built under the public-private-partnership model. L&T IDPL had bid for a grant of Rs 465.30 crore for four-laning the Sambalpur-Rourkela section of the state highway.
"The stretch extends for 161.73 km and has been offered for a concession period of 22 years, including construction period of three years. This will be L&T IDPL's first road project in Odisha to be executed on a BOT basis," it said.
The concession agreement for the project was signed between Sambalpur Rourkela Tollways Ltd, a special purpose vehicle formed for the project by L&T IDPL and the Government of Odisha.
"Currently, the road has two lanes and has to be widened to four lanes along with other facilities such as flyovers, underpasses, bridges, bus bays, rest areas and service roads," L&T IDPL said.
L&T IDPL will be entitled to collect appropriate tolls after the completion of construction, based on a pre- determined toll policy issued by the state government.