Central government okays National Highway expansion in KeralaJanuary 15th, 2009 - 6:33 pm ICT by IANS
New Delhi, Jan 15 (IANS) The central government Thursday approved the four-laning of the Walayar-Vadakkancherry section and six-laning of the Vadakkancherry-Thrissur section of the National Highway 47 in Kerala.The Cabinet Committee on Economic Affairs (CCEA) gave its approval to the Rs.13.3-billion road expansion schemes, which will be executed under the National Highways Development Project (NHDP) on a design, build, finance, operate and transfer basis.
The government will provide the viability gap funding, which will not exceed 40 percent of the total project cost excluding the cost of land and pre-construction, an official statement said.
Not every infrastructure project is commercially tenable and viability gap funding finances such projects at concessional rates keeping in mind their larger economic benefits.
The project will be developed by the National Highways Authority of India (NHAI) through private sector concessionaires to be selected following a two-stage bidding process.
The first stage for qualification of the bidders has already been completed.
The concession period, of the period of contract with the private sector company, for both the projects is 20 years, including 30 months for construction, the statement added.