Mandsaur-Sitamau Road

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In July 2007, the Madhya Pradesh Road Development Corporation (MPRDC) signed a 25 year concession contract (including 15 month of construction period) to India’s Suryavanshi Infrastructure Pvt. Ltd. (SIPL) to reconstruct and rehabilitate the 44 km section on Sitamau-Mandsaur in the state of Madhya Pradesh Under the contract, SIPL was responsible for the construction, finance, operation and maintenance of the existing highway. The project was expected to ease traffic movement and give significant stimulus to trade and commerce in the entire region. Suryavanshi Infrastructure Pvt. Ltd. (SIPL) won the competitive tender, conducted by MPRDC, by making the lowest fixed subsidy request of US$ 2.48 million (out of this US$ 1.37 million was funded by Viability Gap Funding (VGF) scheme of Government of India). Apart from this upfront payment by MPRDC (and GoI), SIPL was allowed to recover the capital costs and operating costs including returns through tolling during concession period (excluding construction period). The project reached financial closure in July 2007. The total capital cost of the project was estimated at US$ 6.31 million. Construction on the project began in July 2007 and was expected to be completed by October 2008.