SU Toll Road Private Limited

active

In July 2007, the National Highway Authority of India (NHAI) signed a 25 year concession contract (including 25 month of construction period) to India’s Reliance Energy Ltd. (Reliance) to widen and strengthen the 135.3 km section on National Highway (NH) 68 between Salem to Ulundurpet in the state of Tamil Nadu. Under the contract, Reliance 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, part of National Highway Development Project - Phase IIIA, was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. Reliance established SU Toll Road Pvt. Ltd., a special purpose vehicle, to implement the project. Reliance won the tender through competitive bidding, conducted by NHAI by requesting the lowest fixed subsidy of US$ 91.51 million. Apart from this upfront payment by NHAI, under the contract, SU Toll Road Pvt. Ltd. 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 July 2007. The total capital cost of the project was estimated at US$ 235.25 million. Construction on the project began in July 2007 and is expected to be completed by June 2010. www.pppinindia.com www.projectstoday.com www.nhai.org www.infrastructure.gov.in