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New Delhi/Bhubaneswar: The cabinet committee on economic affairs (CCEA) today approved the development of four-laning of 'Cuttack-Angul' Section of National Highway NH-42 under the National Highways Development Project (NHDP) Phase III.
Official sources said the road will be developed in Built-Operate-Transfer (BOT) mode on Design, Build, Finance, Operate and Transfer (BOT/DBFOT) basis. The total project cost (TPC) estimated for the 112 km project will be around Rs 1,576 crore.
The project aims to expedite the improvement of infrastructure in the state and also in reducing the time and cost of travel for traffic, particularly heavy traffic, plying between 'Cuttack-Angul' section.
Officials said the maximum grant from the government for Viability Gap Funding (VGF) would be 40% of the TPC.
"Bids have been invited on the basis of provisions of the model concession agreement subject to such changes as accepted by the PPPAC (public-private partnership approval committee)," a CCEA statement said.
"Maximum grant from the government for viability gap funding (VGF) would be 40 percent of the TPC (total project cost)," the statement added.
In March, 2012 the project for four-laning of the 'Cuttack-Angul' section of NH 42 was awarded to Ashoka Buildcon.
However, due to non-fulfillment of condition precedents by the NHAI (National Highways Authority of India), the previous concession agreement was terminated on mutual consent.
