Ashoka Buildcon has announced that PNG Tollway has given notice of termination of the concession agreement to NHAI in respect of the Pimpalgaon-Nasik-Gonde road of NH-3 in Maharashtra, India.

The concession involved the design, engineering, finance, procurement, construction, operation and maintenance of 6 laning of the road. The total project investment was estimated at Rs16 billion (US$237.3 million).

In a filing to the Bombay Stock Exchange, the company reported:

“Ashoka Concessions Ltd, a subsidiary of the company, has informed the company that one of its associate companies viz. PNG Tollway Ltd (SPV) has given notice of termination of the concession agreement to NHAI in respect of the project viz. to undertake design, engineering, finance, procurement, construction, operation and maintenance of 6 laning of Pimpalgaon-Nashik-Gonde section of NH-3 in the state of Maharashtra on Design, Build, Finance, Operate and Transfer (DBFOT) basis.” 

The project was launched on 15 January 2009 and the concession agreement was signed on 3 July 2009. The road was expected to start operations in October 2012 but was delayed because political parties pressed for no toll-collection until the project was completed.

Later, in May 2014, Ashoka Buildcon announced that full operations of the road had been started, but finally the concession has been canceled.