Narmada Infrastructure Construction Enterprise Limited

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Narmada Infrastructure Construction Enterprise Limited (NICE) signed an agreement with the Central Government and the Government of Gujarat in November 1997, to implement the second Narmada bridge project at Zadeshwar on National Highway 8 in Gujarat. The scope of the project included construction of a new 1.4 km long bridge across river Narmada adjacent to the first bridge, along with 4.6 km of approach roads. The project also included maintenance of both the bridges and approach roads, and toll collection from users of both bridges. This project was undertaken on a BOT basis for a period of 15 years, including the construction period. The second Narmada bridge was expected to relieve the traffic congestion on the busy NH-8. NICE was a special purpose vehicle promoted by India’s Larsen and Toubro Limited (L&T). In 2002, L&T sold 20% stake in NICE to Infrastructure Leasing and Financial Services Limited (IL&FS). The total cost of the project was estimated at US$ 31.1 million. The project was expected to be executed on a debt equity ratio of 65:35. The user tariffs for the bridge range between US$ 0.3 and US$ 0.91 depending on the class of the vehicles. The contract had a provision for the rates to be revised annually pegged to the movement of the wholesale price index. Construction of the project was completed in October 2000 and toll collection began in November 2000. None None