Salem to Karur (NH-7)

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In June 2007, National Highways Authority of India (NHAI) signed a 20 year concession agreement with the consortium of M. Venkata Rao, M.R.K. Prasad Rao and JTEC to strengthen and widen the 42 km section on National Highway 7 (NH-7) between Salem and Karur, in the state of Tamil Nadu. Under the contract, MVR was responsible for the operation, maintenance, and widening of the existing two-lane highway to a four-lane highway with paved shoulders. The expansion project, part of National Highway Development Project - Phase IIIA, is expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. MVR Infrastructure and Tollways Limited (MVR), established to implement the project, was a joint venture between M/S M. Venkata Rao, M/S M.R.K. Prasad Rao and JTEC . The consortium won the tender through competitive bidding, conducted by NHAI, by offering the highest upfront payment of US$ 30.5 million to NHAI. Under the contract, MVR was to recover the capital costs and operating costs including returns through toll collections during the concession period. The concession agreement for the project was signed in June 2007. The total capital cost of the project was estimated at US$62.2 million, including the upfront payment of US$30.5 million. Construction on the project began in June 2007 and was expected to be completed by January 2009. www.pppinindia.com www.projectstoday.com www.nhai.org www.infrastructure.gov.in