Neelmangla Tumkur Road Project

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National Highways Authority of India (NHAI) awarded a 19 year concession to Jas Toll Road Company Limited (JRTCL) to build, finance, operate and maintain the Neelmangla Tumkur Road Project in the southern state of Karnataka. The project included four-laning of the existing two lane 32.5 km stretch on National Highway four (NH-4) between Neelmangla and Tumkur; construction of two railway over bridges, 10 minor bridges, one flyover, five pedestrian subways, three under passes, and two toll plazas. The concession term included a construction period of two years. The concession agreement between NHAI and JRTCL was signed in July 2001. The Neelmangla Tumkur Road project was part of the Chennai-Mumbai section of the NHAI’s Golden Quadrilateral Program that linked the four major Indian cities of New Delhi, Mumbai, Chennai and Kolkata. This project was expected to ease traffic congestion, reduce travel time and give significant stimulus to trade and commerce in the entire region. Jas Toll Road Company Limited, a special purpose company wholly owned by India’s Abhijeet Group, was established exclusively to implement this project. Abhijeet Group won the project in an international competitive tender, conducted by NHAI, by bidding for the lowest grant of US$ 5.1 million. India’s highway development policy allowed ‘viability funding’ by NHAI to the tune of 40 percent of the capital costs as grant to the concessionaire, subject to competitive bidding. The total capital cost of the project was estimated at US$ 49.2 million. The project reached financial closure in June 2002. JRTCL was to be compensated for the capital and operating costs from the tolls collected during the concession term. Construction work on the project began in June 2002 and was completed in February 2004, four months ahead of schedule. http://www.sebi.gov.in/dp/jastolldraft.pdf