Larsen & Toubro wins US$200 million road PPP project in Odisha
Odisha Government approved the Rs 1292.56 crore (US$200 million) State Highway No.10 (Sambalpur - Rourkela) project on September 5th.
The PPP project has been awarded to Larsen & Toubro Infrastructure Development Projects (L&T IDPL) after being the lowest bidder among 14 international bidders. The project will be implemented under Design, Build, Finance, Operate & Transfer (DBFOT) basis.
L&T will be given 22 years concessional period which includes three years for construction of the project. Under the provisions of Odisha Toll Act, 2010, the company will be entitled to collect toll at three toll gates of the SH-10 for a period of remaining 19 years.
Under the viable gap funding (VGF), the the Central Government will provide Rs 258.51 crore as 20 % for the project, the State Government will pump in Rs 206.79 crore which stands at 16 %.
The four lane pave-shoulder project will expand over the existing two lane SH-10 and it will connect industrial cities like Rourkela, Rajgangpur, Jharsuguda and Sambalpur. It will also facilitate transportation of mineral carrying heavy vehicles.
HLCA gave its nod to the project back in November 17, 2009. Department of Economic Affairs (DEA) of Government of India in its 16th meeting cleared the project for VGF with internal rate of return at the rate of 18 %. The bidding of L&T was considered on October 1, 2012 and Empowerment Committee on Infrastructure (ECI) in its 23rd meeting on August 7 this year approved the project.
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