NHAI awards Rs518-crore BOT project to Patel Engineering

30 May 2007

National Highways Authority of India (NHAI) has awarded an annuity based build operate-transfer (BOT) project worth Rs518 crore to Patel Engineering Ltd.

The is to be located on NH-7 in Andhra Pradesh under North-South Corridor (NHDP Phase II). Patel Engineering and KNR Constructions will jointly execute the project. The semi-annual annuity project will generate total revenue of Rs1,597.32 crore.

The NHAI project work includes design, construction, development, finance, operation and maintenance of Islam Nagar to Kadtal stretch of the Nagpur-Hyderabad section on NH-7 in Andhra Pradesh under North-South Corridor (NHDP Phase II. The work also includes approximately 32km four-laning of the bypass out of 48km.

Avccording to Rupen Patel, managing director, Patel Engineering, "We would focus on selective road development projects following government''s new initiative to encourage private sector participation in the road sector development through BOT (Built Operate and Transfer) annuity projects."

Recognising the present deficiencies in the road network, the government has assigned a high priority to the National Highway Development Programme (NHDP). According to NHAI data, a total of 23,546km of roads would be constructed in the next two year. Further, to encourage participation of the private sector, the department of road transport and highways has laid down comprehensive policy guidelines for private sector participation in the highway sector to encourage private sector participation. It has been decided that all the sub-projects in NHDP Phase-III to Phase-VII would be taken up on the basis of PPP on Build Operate and Transfer (BOT) mode.

As on March 31, 2007, the Company''s order book position stood at around Rs 5,000 crore. Around 55 per cent of the orders are from multipurpose water supply and power projects, 25 per cent from irrigation and 20 per cent in transportation and other sectors.