Major infra companies in fray for Rs 4800 crore Delhi Meerut Expressway project

NEW DELHI: Several major infrastructure companies are in fray for the Rs 4800 crore Delhi Meerut Expressway project. The project is being divided into three packages (stretches) and each package is being bid out separately.

Two concessionaires Ashoka Buildcon and Welspun Group have bid for the 8.7 km long stretch between Nizamuddin and UP border The stretch has provision for a major bridge and has an estimated cost of Rs 796 crores.

Four bidders-APCO Infratech, Sadbhav Engineering, Ashoka Buildcon and PNC Infratech have bid for the 22 km long Dasna-Meerut stretch. The project has an estimated cost of Rs 1,122 crores

Bidding for 49 km long Delhi-Dasna-Hapur stretch that entails an investment of Rs 2800 crore is yet to close.

The project is being awarded under the hybrid annuity model. The Hybrid Annuity Model (HAM) is a mix of engineering, procurement and construction and build-operate-transfer formats, with the government and the private companies sharing the project cost 40:60.

Under HAM, land acquisition and environment clearances are handed over to private contractor before construction is started. The toll is collected by the government and a fixed annuity with a profit margin given to the private partner.