Jaypee pulls out of Ganga e-way project

NOIDA: In a major setback to the Maya government and commuters, the Jaypee group has reportedly pulled out of the 1,047km-long Ganga Expressway project after withdrawing the Rs 1,000 crore bank guarantee. Sources in the developer group said that the government had failed to provide environmental clearance for the project and it was in no position to invest a huge amount in it.

The fate of the Rs 40,000-crore project, which was to connect Greater Noida to Ballia through an eight-lane access controlled expressway, went under a cloud since May 2009, when the Allahabad High Court restrained the state government from proceeding with the project and directed it to obtain prior environmental clearance from the Centre. Later, farmers’ unrest against land acquisition regarding compensation issues added to the project landing in limbo.

According to sources, the decision comes in wake of the fact that delay in getting the environmental clearance was beyond the control of either the state government or the concessionaire and, hence, the money was being withdrawn.

Sources in Jaypee group said that they could foresee no profits from the amount submitted as the fate of the project remained undecided. “With the court adding to the issue, and non-utilization of the investment, the group decided to withdraw the bank guarantee so that this huge amount could be invested in other projects,” said a senior official in Jaypee group on the condition of anonymity . The bank guarantee has been returned to the concessionaire with a clause that if and when the project gets environmental clearance, the amount can be deposited again.