GMR desire to bring around mega highway plan

Q: GMR Infrastructure is looking to bring around the Ahmedabad-Udaipur-Kishangarh project provided the government reschedules the premium payment option that was quoted at Rs 636 crore annually.

Chandan Thanki, Ahmedabad

16th December 2014

Real estate News in Ahmedabad

nhai

highway projects

gmr infrastructure

ahmedabad-udaipur-kishangarh project

mega highway plan

Follow Discussion

Also see discussions for

Ahmedabad Real estate News Real estate News in Ahmedabad

Replies (7)

In January 2013, the company reportedly sent a notice for end of contract to NHAI refering failure to obtain environmental clearance from the authority and revised toll rate. The company now believes there is noticeable grip in the western and the northern region in terms of traffic revenue growth, led by a rising consumption pattern.

Kamal Shekhawat, Ahmedabad

16th December 2014

Comment

GMR Infrastructure bagged NHAI's biggest highway project in 2011, the Rs 7200 crore Kishangarh-Udaipur-Ahmedabad stretch by quoting a premium of Rs 636 crore. The winning bid raised several eyebrows and questions about the project's financial viability.

Vikas Modi, Ahmedabad

16th December 2014

Comment

GMR and other major project builders are pushing for rescheduling their payments to NHAI. The NHAI official quoted earlier said some 11 projects are earmarked for four-six lane segment, and are unlikely to benefit as much as the two-four lane projects.

Kamal Shekhawat, Ahmedabad

16th December 2014

Comment

Last March, the finance ministry had approved the Rangarajan committee's recommendations to reschedule the premium payments that would benefit more than 21 projects with a total premium of Rs 40000 crore. However this rescheduling was banned to only 2-4 lane projects and not 4-6 lane projects, except in the case of operating highways that were facing revenue shortfall while meeting their debt obligations.

Vikas Modi, Ahmedabad

16th December 2014

Comment

You are right Vikash,
This time with a change in government, and infrastructure development back in focus, the company has plan for delay of premium. Should that happen, such a policy would also benefit other major highway projects being executed by L&T and Essel Infrastructure's Chennai project. The goveranment has partially agreed to the demand, but instead of rescheduling they want the payment to be deferred with the liabilities to be reflected on the books.

Kamal Shekhawat, Ahmedabad

16th December 2014

Comment

But this time a rescheduling plan under the Rangarajan panel approved by the previous government had ruled out delay of premium payment as 4-6 lane projects get recording right from day one or the appointed date and have a ban on payment, making it necessary for the concessionaire to pay the premium to NHAI.

Vikas Modi, Ahmedabad

16th December 2014

Comment

Hi,
Almost two years after quitting India's first mega highway project worth Rs 7200 crore, debt-laden GMR Infrastructure is looking to bring back the Ahmedabad-Udaipur-Kishangarh project provided the government reschedules the premium payment option that was quoted at Rs 636 crore annually.

Kamal Shekhawat, Ahmedabad

16th December 2014

Comment