Hyderabad-based KNR Constructions foresees a delay of up to four months in the completion of its two BOT projects because of a delay in the allotment of land.
Hyderabad-based KNR Constructions foresees a delay of up to four months in the completion of its two build-operate-transfer (BOT) projects because of a delay in the allotment of land by the National Highways Authority of India (NHAI), said K Jalandhar Reddy, executive director.
KNR is currently executing two BOT projects, both on an annuity basis, in consortium with Patel Engineering. One of the projects is in Karnataka and the other in Andhra Pradesh. They are worth Rs 460 crore and Rs 550 crore, respectively.
“We got the go-ahead from the NHAI for a disputed 3-km stretch of land for the Karnataka project only last week,” said Reddy. The project stretches from the Bangalore International Airport at Devanahalli to the Andhra Pradesh border on National Highway-7. Reddy said that the project could be delayed by 3-4 months.
“Our first drawdown for annuity is on September 23,” said Reddy.
KNR Constructions and Patel Engineering won the project in March 2007. The NHAI was to acquire 50% of the land required for the project within six months of awarding it and the remaining within nine months. However, even though a year has passed after the awarding of the project, the complete land required for it hasn’t been acquired.
Similar is the case with KNR’s other project on the Hyderabad-Nagpur highway. Reddy said the company got the project in March 2008, but so far it has been given only 70% of the land. “We are expecting a response from the NHAI next week on this. We are scheduled to complete the project by next March, but there could be a delay of two months,” said Reddy.
Inordinate delay in land acquisitions for highway projects is one of the problems plaguing developers, making them averse to NHAI projects. Asked if things have improved in the past few months, Reddy said, “Though NHAI officials say they will do something about it, nothing has changed.” Though KNR currently has no bids for NHAI projects, Reddy said out of the 8 projects the company examined, it has found 2-3 projects viable, for which it will soon submit bids.
KNR’s order book stands at Rs 1,300 crore, 90% of which is contracting jobs on national and state highway projects. Irrigation projects make up the remaining 10%. KNR is doing the engineering, procurement & construction (EPC) work on both its BOT projects.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}