Government may replace Delhi-Gurgaon expressway contractor

NEW DELHI: The government might replace the contractor of Delhi-Gurgaon expressway considering its failure to improve the traffic situation at the 32-lane and the Kherki Dhaula toll plazas. Sources said lenders to the project were also pushing for a substitution, which is also allowed as per the contract, and a decision could be taken soon.

The issues were discussed in the recent meetings convened by NHAI with representatives of Delhi-Gurgaon Super Connectivity Ltd (DGSCL) and bankers. Sources said top highway authority officials had told DGSCL that they had little faith that the company would ensure smooth traffic flow at the toll plazas. If the substitution happens , it will be the first ever in the highway sector.

“This has been common in other sectors as there is a provision for substitution in the concession agreement. This will be in the interest of lenders since any further suspension of tolling will impact their investment recovery,” said an official. A consortium of lenders led by IDFC and two major public sector banks has refinanced (about Rs 500 crore each) the project and their investment is stuck. NHAI has alleged that the contractor fraudulently refinanced the project at Rs 1,597 crore without taking clearance from the authorities.

Sources said the modalities of substituting the contractor would be worked out and the new contractor would be responsible for operation and maintenance while financial issues with DGSCL would be sorted out. “There is a need to give more incentives to people to shift to smart tags and expand the toll plazas. Had these been done, things would have not been so bad,” a highways ministry official said.

Meanwhile, on Wednesday, DGSCL and NHAI representatives agreed to introduce fresh measures to ease traffic flow at the 32-lane plaza. This includes the provision of throwing open the toll gates for 3-4 minutes should a gridlock develop at a certain point ahead of the toll plaza. “The point would be identified mutually involving traffic police officers. The other issues almost resolved include setting up staggered toll gates,” a source said. NHAI and DGSCL are likely to submit the status of their negotiation on all issues including financial aspects before the Delhi high court on Monday.