Legal action to be taken against GMR by NHAI
New Delhi- With the GMR group walking out of the Kishangarh- Udaipur-Ahmedabad project slated for 16 months after securing the order has invited trouble as the National Highways Authority of India (NHAI) may take legal action against GMR Group.
An estimated investment of about Rs 5,387 crore was expected for the project.This project with an annual premium of 26 years and Rs. 636 crore was won by the Bangalore-based group in Western India via international competitive bidding.
It was stated by an NHAI official that they are examining the case based on the expert’s advice and will seek legal help.
However, the GMR infrastructure stated that they have terminated their contract signed with the NHAI concerning the construction of Kishangarh-Udaipur-Ahmedabad highway.
The Kishangarh-Udaipur-Ahmedabad highway was subjected to be constructed with six lanes up to 555 km. The key reason for GMR to walk out of the contract was due to the regulatory hurdles followed by issues like land acquisition and environment clearance.
The project was to be implemented through the Public Private Partnership (PPP) model on design,finance, operation, building and on transfer basis.
Currently the infrastructure has about 4 annuity projects along with 6 toll projects totaling up to 6,685 lane kms. The financial closure for the project was attained in May 2012.
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Image courtesy of Sura Nualpradid at FreeDigitalPhotos.net
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