Eastern peripheral expressway back on the block

After two unsuccessful attempts during the economic crisis, the Union road transport and highways ministry has, once again, planned to come out with a fresh request for qualification (RFQ) for the Rs2,700 crore eastern peripheral expressway project in New Delhi.

According to officials from the transport ministry, certain new initiatives have been taken to generate investors’ interest this time. Toll rates have been capped and concession period has been increased to attract investors to take up the project.

Consultants preparing the detailed project report have been advised to study the feasibility, considering the concession period as 23.5 years, instead of the earlier 20 years.

Regarding the tolling issue, the ministry felt that imposing a cap on toll was important, as rates on the eastern peripheral expressway should not exceed the maximum toll rate being charged on Western peripheral expressway, which is a similar facility.

“In view of the modifications, further changes are required, particularly in view of the proposed modification in the concession period. About the proposal of capping the rate, NHAI has been suggested to prepare a note for the department of legal affairs, seeking its opinion on the issue, as well as, to seek approval of the finance ministry,” said an official.

The 135-km expressway starts at Kundli on NH-1, passes through Bagpat, bypassing Ghaziabad, Gautam Budh Nagar, and Faridabad and terminates at Palwal on NH-2. Of the total 1680 ha of land to be acquired, 1360 hectare (92%) has already been acquired and acquisition of the remaining land is in progress.

When the project was put on the bidding block for the first time in 2008, Reliance Infrastructure emerged as the sole bidder for the project. The government restructured the project and put it yet again on the bidding block in April 2009. Single bidder scenario emerged yet again, only to be scrapped later.