Chinese co, Soma Enterprise in JV for NH projects
By TNN |
Highlights
NEW DELHI: The Chinese are making a headway in the Indian road sector. Chinese firm China Gezhouba Group Corporation (CGGC) has tied up with Hyderabad-based Soma Enterprise in a joint venture for four national highway projects along the Bangalore-Hyderabad border.
The total cost of the ADB-funded project is Rs 744 crore. While the Indian firm will do actual construction, the Chinese partner will provide technical expertise and project management.
CGGC and Soma Enterprise will jointly be the contractors for the four projects comprising a total length of 168 km on National Highway (NH)-7. The projects are part of phase-II of the National Highways Development Programme (NHDP), commonly known as the north-south corridor. The projects will be developed on a cash-contract basis.
���After completion of the four-laning of Hyderabad-Bangalore on NH-7, travel time would be reduced to about eight hours. At present, travelling between the two cities takes more than 12 hours,��� Soma Enterprise director Ankineedu Maganti said.
���CGGC will provide the technical support and expertise for planning and project management,��� Mr Maganti said. Though the construction period is 30 months, the duo expects to wrap up the project within 24 months. The estimated date of completion of NHDPII is 2008-end.
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���We have maintained an open-door policy for all national highway projects. The best of companies in the international market are invited to bid through a transparent competitive bidding system. There are no entry barriers,��� National Highways Authority Of India (NHAI) chairman Pradeep Kumar said. ���We already have 45 international contractors and 40 international consultants engaged in highway projects,��� Mr Kumar said. At present, Chinese contractors are engaged in 14 highway contracts across the country. India has received a loan of $400 million from the ADB for the development of the northsouth corridor for rehabilitation and upgradation of road sections on NH-26 and NH-7.
Apart from the four JV projects, two more projects on NH-7 will be developed by Chinese contractor Continental Engineering Corporation. ADB would contribute about 67% of the total project cost of $257.96 million for the six projects.
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