Tighter norms ahead for big highway bidders | business | Hindustan Times
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Tighter norms ahead for big highway bidders

business Updated: Dec 09, 2009 22:51 IST
Samiran Saha

The National Highways Authority of India (NHAI) plans to set tough criteria to select bidders to build mega road projects of 400 km or more each in a new round of road building that involves high costs. In all the government plans to build 10 such projects involving a total of 4,800 km and an estimated budget of Rs. 45,000 crore.

NHAI’s board is scheduled to meet on Thursday to set new terms.

“We are finalising the criterion for bidders who could qualify to bid for these mega projects as these are very cost intensive projects and the government wants to be very sure about the capability of the bidders,” a senior official with the Ministry of Road Transport and Highways told Hindustan Times.

Two of these projects will be awarded in the current fiscal year that ends next March, and will involve a combined length of nearly 1,000 km.

Bids for three mega projects are likely in 2010-11, while the remainder will come up later, the official said.

“We will now bid only for mega projects because of the economies of scale,” G.M. Rao, chairman of the GMR Group, told Hindustan Times.

Amitabh Mundra, director, Simplex Infrastructure, said his firm was likely to bid with a partner. “We will study the projects before venturing,” said V.D. Mhaiskar, chairman of IRB Infrastructure.