Hoshangabad-Piparia-Panchmarhi Road

active

Chetak Enterprises Pvt. Ltd. was awarded a 15 year build-operate-transfer (BOT) contract for the 126.7 km Hoshangabad-Piparia-Panchmarhi road by Madhya Pradesh Road Development Corporation Limited (MPRDC) in February 2003. MPRDC is a wholly owned Madhya Pradesh (MP) state government company responsible for the construction and rehabilitation of MP state roads. This BOT contract was in response to an urgent need to strengthen and upgrade the region’s roads due to a considerable increase in traffic and commercial activities. Chetak Enterpises Pvt. Ltd. won the contract by bidding the lowest government grant/ subsidy amount of US$ 7.62 million in a competitive tender conducted by MPRDC in December 2002. Under the contract, all the investment was made by Chetak Enterpises Pvt. Ltd. in return for the right to collect tolls during the term of the contract. The total cost of the project was estimated at US$ 12.86 million. The Hoshangabad-Piparia-Panchmarhi Road became fully operational in 2006.