By the end of this month, the Delhi-Gurgaon expressway may not only get a new concessionaire to manage it for the next nine years, but also a new name — Millennium City Expressway.
The lenders of the project, led by IDFC, are going to form a consortium firm in the name of Millennium City Expressways Private Limited (MCEPL), replacing the earlier concessionaire Delhi Gurgaon Super Connectivity Limited (DGSCL).
The new concessionaire MCEPL, with experts drawn from India’s top infrastructure development firms, would sign a revised agreement with the National Highway Authority of India (NHAI), paving way for many stalled developmental works on this stretch.
One of the key work would be resurfacing the entire 27.7-km stretch between Rao Tula Ram Marg and Kherki Daula Toll plaza, which is mandatory every five years.
Opened for public use in January 2008, the expressway that has developed cracks at many places on its surface was to be resurfaced last year. The cost of the resurfacing is about `80 crore.
As the transition period of 90 days during which the lenders of the project had taken over the expressway from DGSCL on February 20 on the Delhi high court orders, ends on May 19, the lenders are required to float a special purpose vehicle (SPV) firm for managing the expressway for the next nine years till January 2023.
As per the consent order passed by the Delhi High Court on February 19, the lenders led by IDFC had appointed Feedback Brisa as operation, maintenance and tolling (OMT) operator for 90 days, the term for which expires on May 19.
Sanjay Grewal, the group head of IDFC told Hindustan Times on Friday that appointment of Feedback Brisa as OMT for the 90 days transition period was a temporary arrangement. “
As the transition period expires on May 19, all the constituent banks have decided to form a consortiums firm Millennium City Expressways Private Limited after May 19. All the banks will get respective internal approval by May 15 after which we would approach the NHAI for the formal approval for floating MCEPL as a new concessionaire for eight years and seven months concession period for managing the expressway. MCEPL would also sign a new concession agreement with NHAI,” Grewal added.
Grewal said Narayanan Subramaniam would be the acting chief executive officer (CEO) of MCEPL. Subramniam comes with a huge experience in the infrastructure companies such as Hindustan Construction Company (HCC), GMR, L&T and others.
“MCEPL will float tenders inviting bids from reputed firms for various works such as surfacing of the expressway, maintenance, tolling, upkeep etc. As regards, Feedback Brisa and newly introduced Gawar Constructions whose terms is ending as expressway operator and toll operator respectively, these companies would apply afresh for the next term and compete with other bidders,” Grewal said.