Vijayawada-Masula four-lane cost triples in decade.

A decade after its announcement, except for tripled cost escalation, the Vijayawada-Machilipatnam four-lane project has not progressed on desired lines.

The project is now estimated to cost more than Rs. 1,000 crore. Incidentally, it was Rs. 300 crore when the project was announced in 2004.

In fact, the project has now to be started from scratch, with the National Highways Authority of India’s decision to cancel the contract awarded to M/s Vijayawada-Machilipatnam Expressways Limited, a firm floated by the Madhucon Infra Limited, sources say.

The 64-km four-laning project was estimated to cost Rs. 606 crore a couple of years ago. Then estimate was then based on the 2010-11 rates. Consequently, the NHAI had to revise the estimate, taking the 2015-16 rates into consideration.

The Authority is now planning to go for the engineering procurement and construction (EPC) mode as against the existing Build Own and Transfer (BOT) model. It is also planning to bring some changes in the project. However, the details are not available.

Madhucon has to pay nearly Rs.1 lakh a day for its failure to execute the project as per the schedule.

The Authority had served termination notices to Madhucon in September 2013. It, however, gave 'grace time' to Madhucon following its promise that it would reach the financial closure by December 2013.


THE HINDU