NHAI in a fix as lowest bidder comes up with a fresh model

  • 06/04/2004

  • Financial Express (New Delhi)

The government is in a fix over awarding two highway projects worth about Rs 900 crore for which leading construction companies like Larsen & Toubro, Gammon, Nagarjuna Constructions are in the race. A consortium of Ircon International and Soma Constructions has emerged as the lowest bidder for the projects by quoting the lowest subsidy figure but it has also offered to pay the government for the project. This has put the National Highway Authority of India (NHAI) in a dilemma as it will be a deviation from the usual model concession agreement for build-operate-transfer projects.