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Business News/ Politics / Policy/  Maharashtra govt appoints committee on Kolhapur toll issue
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Maharashtra govt appoints committee on Kolhapur toll issue

Panel to evaluate actual expenditure made by IRB Infrastructure on road construction and suggest ways to compensate the firm

The decision to appoint committee on Kolhapur toll issue was taken in a meeting called by chief minister Devendra Fadnavis. Photo: MintPremium
The decision to appoint committee on Kolhapur toll issue was taken in a meeting called by chief minister Devendra Fadnavis. Photo: Mint

Mumbai: The Maharashtra government on Wednesday decided to appoint a committee under the chairmanship of the state’s public works minister to suggest ways to compensate contractor IRB Infrastructure Developers Ltd, if the government decides to scrap a toll road in the southern Maharashtra town of Kolhapur. The committee has been asked to submit its report within one month.

The decision to this effect was taken in a meeting called by chief minister Devendra Fadnavis which was attended by legislators from Kolhapur, activists of Anti Toll Action Committee (ATAC) and officials from concerned government departments.

Public works minister Eknath Shinde said, “This committee will evaluate actual expenditure made by the company on the construction of road and also suggest ways to government, how company can be compensated if decision to scrap the toll is taken and chief minister has asked me to give report within one month."

IRB won the contract to develop 50 kilometres of the road in and around Kolhapur under a project called integrated road development project in 2007. However it could begin work only in 2009 due to issues like delays in land acquisition, environmental clearance among others, and completed the project in December 2011.

The company claims it invested around 510 crore in development of roads. However, their claim has been challenged by ATAC which claims that as per the terms and conditions of the contract, the size of the project was just 225 crore and IRB has completed only 90% of the work.

According to IRB’s agreement with Kolhapur Municipal Corporation and Maharashtra State Road Development Corporation (MSRDC), IRB was to get rights to collect toll for 30 years in lieu of developing the roads.

But due to stiff resistance by local residents, the company has not been able to start its toll collection operations despite orders by the Bombay high court asking the state government to provide protection to IRB’s toll collection staff. Several incidents of assault on IRB employees and burning of toll plazas have been reported in the past.

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Published: 24 Dec 2014, 11:16 PM IST
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