Odisha govt approves Rs 1,292 cr road project under PPP mode

In a bid to expedite infrastructure projects in the state, Odisha government approved Rs 1292.56 crore for four laning of the state highway between Sambalpur and Rourkela, official sources said today.
The biggest ever project under public private partnership (PPP) mode in Odisha got the approval of the High Level Clearance Authority (HLCA) headed by Chief Minister Naveen Patnaik.
The PPP project has been awarded to L&T's (industrial development project limited) IDPL which was the lowest bidder among 14 international bidders. The project will be implemented under Design, Build, Finance, Operate & Transfer (DBFOT) basis.
Land acquisition for the 163-kilometre long four laning of SH-10 will be done in 85 villages. Land for the project will be made available by end of this month. "About 90 per cent land has already been acquired for the project," a senior official said adding that the statutory clearances for the project have been obtained.

L&T will be given 22 years concessional period which includes three years for construction of the project. Under the provisions of Odisha Toll Act, 2010, the company will be entitled to collect toll at three toll gates of the SH-10 for a period of remaining 19 years. However, it will have the responsibilities for taking up maintenance, repair and other ancillary works whenever and wherever necessary.
Under the viable gap funding (VGF), both the State and Central Government will contribute 36 per cent finance for the project. While the Central Government will provide Rs 258.51 crore as 20 per cent for the project, the State Government will invest Rs 206.79 crore which stands at 16 per cent.