The National Highways Authority of India (NHAI) has declared October 5 as the appointed date for Welspun Enterprises to begin work on four lng of Sattanathapuram to Nagapattinam highway section in Tamil Nadu.
"The competent authority has accorded approval for appointed date with four lane road and four lane structures as against four lane road and six lane structures specified in the concession agreement," the company said in a statement.
It added that the current land availability will be of 29.39 km (52.71 per cent) as against the requirement of 80 per cent without any claim by either party.
Welspun Enterprises was to develop the project at a bid project cost of Rs 2,005cr for six lane structure and first-year operation and maintenance cost of Rs 5 crore.
"The reduction in bid project cost due to change from six lane structures to four lane structures is yet not ascertained but is expected to be in the range of Rs 100 to 150 crore with an equitable reduction in the cost of civil works."
The construction is to be completed within two years from the appointed date and the project will be maintained for 15 years from commercial operation date. The project has already achieved financial closure and loans are fully disbursable.
Welspun Enterprises said it has a proven track record of delivering marquee infrastructure projects in India and has a portfolio of seven projects hybrid annuity model (HAM) worth Rs 9,800 crore and one build-operate-and-transfer project worth Rs 2,122 crore.
"Two of the HAM assets are already operational and we expect another three HAM assets to be operational by end of FY21," it said.
( With inputs from ANI )
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor