Phase II of ORR work to begin in Jan '07

The state government's infrastructure and investments department, which is overseeing the Hyderabad Outer Ring Road (ORR) project, is planning to finalise the process for tenders for the 75-km second phase road work by October 2006. The department will invite expression of interest from companies in July.

While the 24-km first phase stretch, which has been awarded to Russian and Taiwanese companies in two packages, is scheduled to be completed by March 2007, the second phase is expected to be completed by March 2008.

According to a senior official, the government is considering annuity and BOT route for the second phase work unlike the first phase.

The Hyderabad Urban Development Authority (Huda) has raised about Rs 500 crore to fund the construction of the 24-km stretch that connects Gachibowli to the new international airport.

"We require about Rs 750 crore for the second phase project which will be given both on annuity and BOT basis," the official told Business Standard, adding that the government would need to provide not more than Rs 150 crore a year by this method.

Officials are planning to hold a public hearing on the second phase road project in July and hoping to get environmental clearance by September.

Initially, the government toyed with the idea of offering land in exchange for the cost of the project construction to a successful bidder selected through the Swiss Challenge method. But later it changed its strategy in view of a possible controversy with regard to land transfer and approached the Japan Bank for International Cooperation (JBIC) for funding the project as an alternative option.

"We may use JBIC funding for the second phase project and are also looking forward to the National Highway Authority of India (NHAI)'s assistance," the official said.

The second phase covers the stretches between the Shamshabad international airport and Nagarjunasagar road in first bit and between Nagarjunasagar road and Patancheru in the second bit.

The remaining 60-km stretch between Shamshabad and Patancheru connecting Vijayawada highway is expected to be taken up in the third phase for which the tender process would be initiated in March 2008 to complete the entire project by March 2009, according to officials.

The government is considering the option of collecting toll in the third phase stretch.

The Centre, under urban renewal programme, has sanctioned three connecting roads from the core of the city and these roads are also expected to be taken up simultaneously with the second phase project to ensure that the new international airport is well connected with various parts of the city by the time it commences operations in March 2008.