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Empowered panel paves way for Ring Road

Settlement committee was constituted to resolve the dispute among JDA and contractor firm

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The new deadline for the much delayed Jaipur Ring Road project is expected to be extended to August 2018, as empowered committee approved the settlement committee report submitted a week earlier. Settlement committee was constituted to resolve the dispute among JDA and contractor firm.

The 47-kilometre long ring road project has been in loops since its initial stages and now will once again be handed over to National Highway Authority of India (NHAI). “A memorandum of understanding (MoU) is expected to be signed with the NHAI next month,” informed a source at urban development department.

The MoU date is not fixed yet and it is conditional to the proposal of empowered committee being accepted by the contractor firm that presently holds the contract for the project. The Sanjose Supreme Tollways Development Private Limited, which had been handed the contract in 2011 had demanded Rs 566 crore as settlement amount for performed work.

However, the settlement committee recommendations approved by the empowered committee have approved of Rs 205 crore of the amount.

“The NHAI will take over the liability of Rs 221 crore bank loans that the contractor firm had taken from banks against the granted project. However, the contractor will still have a liability of nearly 24 crores,” informed the source. The agreement, however, is subject to the agreement of the contractor firm, the company reaction was unavailable as the new proposal is yet to be officially delivered for their consent.

The recent developments have once again raised hopes of commencement of work on the ring road which has been stalled for long period of time.

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