Suratgarh Sriganganagar Toll Road Private Limited

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In March 2012, the Government of Rajasthan (Public Works Department on behalf of Ministry of Road Transport and Highways (MoRTH), Government of India) awarded a 11 year concession (including construction period of 2 years) to Unity Infraprojects Limited (UIL) for the strengthening, improvement, two-laning, operation and maintenance,and tolling of 78.01kms Suratgarh– Sriganganagar Section of NH-15, in the state of Rajasthan. Under the contract, Unity Infraprojects Limited was responsible for the design, construction, finance, operation and maintenance and widening of the existing carriageway to a two-lane highway with paved shoulders. The scope will include construction of new pavement, rehabilitation of existing pavement, construction and/or rehabilitation of major and minor bridges, culverts, road intersections, interchanges, drains, etc. The Government of India, Ministry of Road Transport and Highways (MORTH) through Public Works Department (PWD), Government of Rajasthan had decided to take up the development of various National Highway Corridors for augmentation of capacity for safe and efficient movement of traffic by widening to 2-lane with paved shoulder. Under this program, this project was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. Unity Infraprojects Limited established Suratgarh Sriganganagar Toll Road Private Limited, a special purpose vehicle, to implement the project. The SPV won the tender through international competitive bidding, conducted by PWD Rajasthan, by requesting the lowest upfront subsidy of US$ 1.1 million (INR 57mn @50 INR/USD). Under the contract, the SPV was to recover the capital costs and operating costs including returns through tolling during the term of concession. The concession agreement was signed in November 2012. Details of financing were not available at the time of collection of this information. The estimated capital cost of the project at the time of bidding was US$ 66mn (INR 3300mn @50 INR/USD). Construction on the project was expected to begin in January 2013 and be completed by January 2015.