Jaora Nayagaon Road Project

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In September 2007, the Madhya Pradesh Road Development Corporation (MPRDC) signed a 25 year concession contract (including construction period of 30 months) to Jaora-Nayagaon Toll Road Company Pvt. Ltd. to strengthen and widen the 126 km section,from km 126/200 to 252/200,of the State Highway 31 (SH-31) from Jaora to Nayagaon in the state of Madhya Pradesh. Under the contract, Jaora-Nayagaon Toll Road Company Pvt. Ltd. was responsible for the design, construction, finance, operation and maintenance and widening of the existing two-lane highway to a four-lane highway with paved shoulders. The expansion project, was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. Jaora-Nayagaon Toll Road Company Pvt. Ltd. (JNTRCPL), established to implement the project, is a joint venture formed by SREI Infrastructure Finance Limited (28%), Subhash Projects & Marketing Limited (11.5%), Viva Infrastructure Private Limited (49%) and PNC Infratech Limited (11.5%). JNTRCPL won the competitive tender, conducted by MPRDC, by offering the highest premium to MPRDC of US$ 50 million during the operation period (US$ 3.84 million in the first year which is to be increased in each subsequent year by 5% per annum, through the operation period; Net Present value discounted at 10%). Under the contract, JNTRCPL was to recover the capital costs and operating costs including returns through toll collections during the concession period (excluding the construction period). The project reached financial closure in June 2008. The total capital cost of the project was estimated at INR 8470 million (US$ 195 million). Construction on the project began in June 2008 and was expected to be completed by February 2010. www.projectstoday.com MPSRDC http://www.spml.co.in/business/bootppp/infraprojects/infraproject03.htm