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Indian state Odisha approves major PPP road project

9 September 2013

The Indian state of Odisha has approved Rs12.92bn ($198m) of funding for a major road widening project in a bid to speed up infrastructure development in the state.

To be executed under a public private partnership (PPP) model, the 163km-long project involves four-laning State Highway 10 between the cities of Sambalpur and Rourkela.

The project, which is the biggest ever road scheme under a PPP mode in the state, received a permit from the High Level Clearance Authority (HLCA) led by the Chief Minister Naveen Patnaik.

The development of the project has been awarded to L&T's IDPL, which was declared as the lowest bidder in a process that included 14 international bidders.

The project will be executed under a design, build, finance, operate and transfer (DBFOT) mode.

"The project will be executed under a design, build, finance, operate and transfer mode."

Under the viable gap funding (VGF), the State and Central Government will contribute 36% funds for the project.

The Central Government will contribute Rs2.58bn ($39.5m) as 20% for the construction project, while the State Government will fund 16% at Rs2.06bn ($31.5m).

Nearly 90% of the land for the project has been acquired with the required statutory approval already obtained.

Land acquisition for the four-laning project of SH-10 is being done in 85 villages, and will be completed by the end of September 2013.

Under the contract, L&T will receive a 22-year concessional period, including three years for the construction of the project.

The construction firm will possess rights to collect toll at three toll gates of the SH-10 for 19 years.

It will also be responsible to carry out maintenance, repair and other ancillary works along the route.