Date:20/01/2007 URL: http://www.thehindubusinessline.com/2007/01/20/stories/2007012000840700.htm

Back NHAI receives Rs 55-cr `negative grant' from GMR

Our Bureau

New Delhi, Jan 19

The National Highways Authority of India (NHAI) has received a cheque for Rs 55.11 crore as "negative grant" from GMR Ulundurpet Expressways Private Ltd towards four-laning and strengthening of the existing two-lane Tindivanam-Ulunderpet section of NH-45.

The project would be taken up on build-operate-transfer (toll) basis, according to an official release.

Negative grant is the amount paid by a road developer to the Government to be allowed to construct and collect toll from traffic on the road for a certain period.

Mr Pradeep Kumar, Chairman of the NHAI, received the cheque from Mr G. Subba Rao, Director of the GMR Group.

The total negative grant for this project is Rs 152.10 crore (in net present value arrived at by 10 per cent discounting), which would be disbursed up to the 13th year of the concession period.

When completed, the 71.25-km Tindivanam-Ulunderpet section of NH-45 would take care of a long-standing demand of the people living in this region, the release added.

With this, NHAI has so far received negative grants worth Rs 1,900 crore for 17 projects under the National Highways Development Programme (NHDP).