Cabinet approves four laning of Hubli-Hospet Section of NH-63 in Karnataka

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has approved the development of four laning of Hubli-Hospet Section of NH-63 in Karnataka.

The cost is estimated to be Rs.2272.20 crore including cost of land acquisition, resettlement and rehabilitation and other pre-construction activities. The total length of the road to be developed is approximately 144 kms.

This work will be done under the National Highways Development Project (NHDP) Phase-IV on Engineering, Procurement and Construction (EPC) basis.

The project will help in expediting the improvement of infrastructure in Karnataka and in reducing the time and cost of travel for traffic, particularly heavy traffic, plying between Hubli and Hospet section. The development of this stretch will also help in uplifting the socio-economic condition of this region in the State.

It would also increase employment potential for local labourers for project activities. It has been estimated that a total number of 4,076 mandays are required for construction of one kilometre of highway. As such, employment potential of 5,86,600 (approx.) mandays will be generated locally during the construction period of this stretch.

Background:

The project was earlier approved on BOT (Toll). Bids were invited for the project three times and one more time with increased Viability Gap Funding (VGF). However, no bids were received. As such, it was decided to implement the project through EPC mode. The project has been appraised by Expenditure Finance Committee (EFC) in its meeting held in March, 2016.

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