UP to go PPP way for highway maintenance

March 31, 2011

Uttar Pradesh government decided to follow the public-private partnership (PPP) model in the upgrade and maintenance of state highways (SH).  The state government will soon start the bidding process for the proposed project entailing an estimated cost of Rs 12,625 crore. It will cover 21 SHs and a span of 2,314 km across various districts.

A state cabinet meeting chaired by Chief Minister Mayawati approved the proposal.

Separate bidding would soon be invited by the government from companies for the project that aims at upgradation and maintenance of the selected state highways, cabinet Secretary Shashank Shekhar Singh said briefing the media about the various cabinet decisions here this evening. The bidding process will start in the first week of April and is expected to get over by the middle of May.

The selected companies would be expected to complete the project in the next one year. They would be allowed to collect toll charges. The government would maintain these highways on a 'continuous basis' out of its own funds, however, if there is any shortfall in the budget, the centre would be urged to provide 20 per cent of the viability gap funding, he informed.

The project would also comprise construction of bypass, foot over-bridge, service lanes and elevated corridor according to local requirements. According to another decision, the accounts of the zila and kshetra panchayat would now be audited under the Comptroller and Auditor General (CAG) guidelines.

 

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