CCEA approved 1575 crore rupees road project in Odisha
The project will be under the National Highways Development Project (NHDP) Phase III with Viability Gap Funding (VGF) of up to 40 percent of the total project cost.
The Cabinet Committee on Economic Affairs (CCEA) on 22 September 2015 gave its nod to four-laning of the 112-km Cuttack-Angul section of the National Highway-42 in Odisha.
The total estimated cost of the project will be 1575 crore rupees and it will be built on design, build, finance, operate and transfer (DBFOT) basis.
The project will be implemented under the National Highways Development Project (NHDP) Phase III.
Maximum grant from the government for Viability Gap Funding (VGF) will be up to 40 percent of the total project cost.
The bids for the project have been invited on the basis of provisions of the Model Concession Agreement.
Once completed, the road will greatly help reduce the time and cost of travel of traffic. It will also give a boost to socio-economic condition of the people living in the region.
On the other hand, the activities related to the project will also provide employment opportunities to local labourers.
The road project was earlier awarded to Ashoka Buildcon Ltd in 2011 during the UPA-II regime. The concession agreement was signed in March 2012. However, the concession agreement was terminated on mutual consent due to non-fulfilment of condition precedents by the National Highways Authority of India (NHAI) as per the provisions of the agreement.
Now get latest Current Affairs on mobile, Download # 1 Current Affairs App