Ring Road: Dilemma over China link now

A new hurdle has stalled much awaited Jaipur ring road project. NHAI is in dilemma over China connection of Haryana based ‘Gawar’ company, which placed the lowest bid for this project. The matter was sent to union ministry of surface transport and national highway, which forwarded it to ministry of external affairs. Now, the NHAI will wait for foreign ministry’s nod to go ahead with bidding process.

Ring road project has been facing problems from the beginning. Initially, the company, which was awarded contract in 2011 couldn’t complete the project in stipulated 24-months due to tussle with its partner. Jaipur Development Authority (JDA) then handed over project to NHAI but went too slow in annulment of contract with the old company. Now, there is a new hurdle. Of the 15 companies in race for this project, Gawar had the lowest bid but before NHAI could issue letter of interest (LOI) to the company, it was revealed that a Chinese has 5% stake in Gawar. The NHAI then sent the matter to union surface transport ministry and subsequently it reached ministry of foreign affairs. Sources said that LOI can now be issued only after clearance from the foreign ministry.

After years of delay, the government was hoping that the NHAI would complete the project by September 2018.

MONEY MATTERS

• Project cost Rs 1,190 crore
   
• Rs 960 crore for first phase of six-lane CC road
   
• Rs 230 crore second phase, includes three flyovers