Kozhikode bypass work to delay further
The remaining payment will be made on the basis of the assets created by the company which has to avail of bank loan of over Rs 700 crore.
Thiruvananthapuram: The six lane, 28.4-km Kozhikode bypass work between Vengalam and Ramanattukara may be delayed because the estimate quoted by the contracting company has to be approved by the centre. The Hyderabad-based KMC Constructions Ltd had quoted more than six percent of the original estimate of Rs 1,284 crore. The officials of the Ministry of Road Transport and Highways (MoRTH) and finance and planning department will meet to decide the tender. The same company had delayed the 24-km Vadakkumcherry – Mannuthy stretch by eight years due to financial issues and the NHAI had terminated the contract in 2013.
The Kozhikode bypass will be constructed under Hybrid Annuity Model (HAM) where the government will contribute 40 percent of the project cost through annuity. The remaining payment will be made on the basis of the assets created by the company which has to avail of bank loan of over Rs 700 crore.
A top NH official told DC that the company does not have a good track record in Kerala. “Now the ball is in the court of MoRTH, finance and planning officials to award the tender,” he said. Thereafter, the company will be given the Letter of Acceptance (LoA) under HAM mode. There is no toll right for the developer. Under HAM, revenue collection would be the responsibility of the National Highways Authority of India.