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GMR Infra wins Andhra highway project

GMR Infra wins Andhra highway project
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First Published: Wed, May 27 2009. 10 10 PM IST

Revenue share: A road under construction. GMR will share around 31% of the revenue in the first year of the concession period. Rajkumar / Mint
Revenue share: A road under construction. GMR will share around 31% of the revenue in the first year of the concession period. Rajkumar / Mint
Updated: Wed, May 27 2009. 10 10 PM IST
New Delhi: Infrastructure developer GMR Infrastructure Ltd has emerged as the winning bidder for the coveted Rs1,460 crore Hyderabad-Vijayawada four-lane highway project.
The company was one of the five bidders on the project, which was mired in controversy after several rounds of litigation in the Delhi high court and the Supreme Court over who would be allowed to place bids for the project.
Revenue share: A road under construction. GMR will share around 31% of the revenue in the first year of the concession period. Rajkumar / Mint
When the bids were opened on 19 May, GMR had offered to share revenues from some 11,169 days before the date of completion of construction. The firm will effectively start sharing around 31% of the revenue in the first year, with an annual increment of one percentage point for the duration of concession—25 years.
The project is among the few that saw high interest from bidders struggling to raise funds. A GMR spokesperson declined to comment, saying the company preferred not to respond to news that was not formally in the public domain.
“It isn’t that there is no interest. It is just that you need to structure the project properly,” said a senior government official who didn’t want to be identified.
“We are receiving interest in some projects, but most of the projects that are being rebid are not viable,” said an official with the National Highways Authority of India, who also requested anonymity.
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First Published: Wed, May 27 2009. 10 10 PM IST