Contends Vadodara-Ahmedabad Highway project was delayed due to land acquisition issues
IRB Infrastructure Developers may soon file for arbitration with the panel of National Highways Authority of India (NHAI) arbitrators for its Vadodara-Ahmedabad Highway project.
The infrastructure firm has recently won an arbitration award of around Rs 325 crore for its project in Goa. The built-operate-transfer (BOT) project was for four-laning of Panaji to Karnataka Border Highway the company won in January 2010.
A special purpose vehicle – IRB Goa Tollway Pvt Ltd – was formed for it, but it ran into rough weather. The estimated construction cost was Rs 800 crore for the 65.07-km highway with a concession period of 30 years. The company had sought an equity of Rs 186.30 crore from the NHAI during the construction phase.
But despite the financial closure by the Mumbai-based company the project did not take off due to problems in acquiring land. Finally in September 2011, the company struck off the project from its order book and claimed compensation, which was delivered only recently.
Having succeeded in Goa, the next in the line is Ahmedabad-Vadodara Highway project. Sources told DNA that out of all the projects in its order books only two are disputed, of which second will be the project in Gujarat. The quantum of claim hasn't been disclosed.
In May 2015, IRB Ahmedabad Vadodara Super Express Tollway Private Limited had raised concerns about revenue losses due to concessional daily and monthly passes being issued to road users. Therefore, a claim will now be made to compensate for the revenue for this 93.30 km long six laning BOT project.
The project entails upgradation of existing National Highway 8 between Ahmedabad-Vadodara from two to six lanes at a stretch of 102.30 km and also to improve or value add Ahmedabad-Vadodara Expressway on a 93.30 km stretch. The overall project construction cost was pegged at Rs 3,600 crore with a concession period of 25 years. Premium for NHAI in the first year is Rs309.60 crore which will increase by 5% year on year.
The company did not respond to query by DNA. Virendra Mhaiskar, chairman and managing director, IRB Infrastructure Developers, did not respond to calls.
IRB has three completed BOT projects, 16 operational and another six under-construction projects. Earlier this year, it bagged a couple of other BOT projects.
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