Government set to fund Eastern Peripheral Expressway project
The government has announced its decision to fund the Eastern Peripheral Expressway (EPE) project. The decision by the government is apparently rooted in the fact that, in the last six years, no private company has showed its willingness to build the EPE on toll mode.
The funding of the EPE project by the government was discussed by the NHAI officials and the Ministry of Roads on Tuesday, in a high-level meeting.
With the government now set to fund the EPE project, unidentified sources familiar with the proceedings have revealed that the Ministry of Roads will soon move a proposal on the public funding of EPE for government approval.
The sources have also disclosed that it will cost the government approximately Rs 4,500 crore to build the 135-km EPE project which will connect Palwal (NH-2), Ghaziabad (NH-24) and Kundli (NH-1).
The government’s funding of the EPE project will seemingly not be a bad proposition, especially when compared against the proposal of giving up to 40 percent in government assistance to ensure the financial viability of the project for any successful private player.
With the EPE project now to be funded by the government, the investment which the government makes on the project will be recovered in the form of toll, which will be collected by the NHAI.
Source – The Economic Times
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