Gammon Infra and NHAI stop concession pacts for two projects
The Gammon Infrastructure and NHIA have stopped the concession pacts for two road projects because of the lack of land clearances. The 2 projects allotted to Gammon in 2012, consists of the Yamuna agar Panchkula project in Haryana and the Birmitrapur Barkote project in Orissa.
Gammon Infrastructure informed that the terminations were done by the mutual thinking between NHAI and Gammon Infrastructure.
The concession agreement on the four-laning of the UP/Haryana border Yamunanagar-Saha-Barwala- Panchkula section of 71.64 km to 179.249 km was signed in July 2012. The complete cost of this project was Rs 1,375 crore and NHIA permit Rs 279 crore. While the concession agreement of the Birmitrapur-Barkote section of NH 23 (211.20 km to 336.81 km). The total cost of this project was Rs 1,000 crore and NHIA permit Rs 311 crore.
As per the senior official of Gammon the company has achieved financial closure on both the projects. While the line of credit for the Yamunanagar Panchkula project was to the tune of Rs 950 crore and for other project it was Rs 500 crore.
An official says that they realized the time taken for land clearance is too long. NHIA was also working to get those land clearance but nothing goes right for this project they mutually decided to end the concession agreements.
As per the industry source these projects may come again for re biding when NHIA gets the land clearance.
The share price of Gammon Infrastructure Projects’ was 1.59 percent in Bombay Stock Exchange.
Source: The Financial Express
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