News Detail

<p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The Vijayawada-Machilipatnam four-lane project is coming back to the square one as the Madhucon Infra Limited, which bagged the project contract, could not achieve the target financial closure as it assured the National Highways Authority of India (NHAI).</span></span></span></p> <p style="text-align:justify"><span style="color:rgb(105, 105, 105); font-family:arial; font-size:11px; line-height:1.6em">The Madhucon again urged the Authority to give &lsquo;grace time&rsquo; of another two months. The NHAI Board is yet to take a decision in this regard. The Authority gave time to Madhucon up to December following its assurance that it would achieve the financial closure by December 2013.</span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The Authority enchased nearly INR 12 crore deposited by the Madhucon in view of the delay. The firm has to pay about INR 1 lakh per day for its inability to execute the project as per the schedule. Now, the NHAI, sources say, is likely to go for fresh bidding to take forward the project. The Authority served the termination notices to Madhucon in September last year.</span></span></span></p> <p style="text-align:justify"><strong><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Rigmarole</span></span></span></strong><br /> <span style="color:rgb(105, 105, 105); font-family:arial; font-size:11px; line-height:1.6em">With this, the status of ambitious project is back to the square one and the Authority has to go through rigmarole of inviting fresh tenders if the Board does not agree for reconciliation.&nbsp;</span><span style="color:rgb(105, 105, 105); font-family:arial; font-size:11px; line-height:1.6em">On other hand, the NHAI could complete the land acquisition in a majority of portions except in places like Poranki and Kanuru. The NHAI has to acquire 212 hectare land for the project. Of this about 20 hectare acquisition is remaining, sources say.</span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">There is an inordinate delay in execution of the project ever since it was conceived. The land acquisition, change in plans and lack of enthusiasm from infra companies were some of the stumbling blocks. At a point of time, the NHAI authorities, in 2010, decided to shrink the proposal of four-lane to just two lanes.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial"><strong>Flyover at Benz Circle</strong></span></span></span><br /> <span style="color:rgb(105, 105, 105); font-family:arial; font-size:11px; line-height:1.6em">The NHAI officials stated they had to alter the four lane project to two lane with paved shoulders, as no contractor evinced interest in taking up the former. The authorities then stated that the cost would come down by at least INR 100 crore, while initial estimates were put at INR 480 crore.</span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Even that proposal did not take off. The 64 Km stretch four laning project now costs INR 606 crore. A flyover at Benz Circle is also proposed in the project.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Source-On Request</span></span></span></p>