National Highways Authority of India has signed an agreement with Welspun Enterprises for development of the first phase of the Delhi-Meerut Expressway. Under the concession agreement, Welspun Delhi Meerut Expressway Private Ltd (a wholly-owned subsidiary of Welspun Enterprises) will develop Package-I of the Delhi-Meerut Expressway at a bid project cost of Rs.841.50 crore, and operate it for a period of 15 years.
The project has been awarded under the new hybrid annuity model. Accordingly, during construction, 40 per cent of the bridge project cost will be funded by NHAI while the concessionaire will arrange the balance 60 per cent. During the operation period, NHAI will pay concessionaire this 60 per cent in semi-annuity, along with interest thereon.
NHAI will also pay the concessionaire annualised operations and maintenance cost of Rs3.95 crore for the maintenance of the project road during this period.
The company said construction of the project is scheduled to be completed in 2.5 years and the project is to be maintained for 15 years after which it will be transferred to NHAI.
The concession is for development of 8.7 km of the existing road on up to Delhi-UP border section of NH-24 in Delhi by six-laning expressway and four-laning either side of the expressway on design, build, operate and transfer annuity or hybrid annuity basis, Welspun said in a statement.