NHAI mulls action as GMR hangs up

National Highways Authority of India (NHAI) is contemplating sending a legal notice to GMR Infrastructure, which has terminated its contract for the country’s biggest road project – the Rs5,700 crore Kishangarh-Udaipur-Ahmedabad project.

GMR on Monday informed BSE that GMR Kishangarh Udaipur Ahmedabad Expressways Ltd, its subsidiary, has terminated the concession agreement for six-laning of the 555 km highway.

“Sending legal notice to the company over the cancellation of the contract is being contemplated. We are evaluating the situation and a decision will be taken shortly,” a senior NHAI official said on condition of anonymity.

To recall, GMR had offered a negative grant of Rs636 crore to the government last year to bag the project.

Transport ministry officials blame the situation on policy loopholes. “Almost 90% of the land for the project is already available... there is no problem on that front. The sore point is the linked format of the environment as well as forest clearance. While the company got an in-principle environment clearance in June last year, the forest clearance has not been granted yet,” said another official, also requesting anonymity.