GMR Group – OSE Consortium Wins 99 Kms Long Hungund – Hospet Stretch, It’s First Highway Project In Karnataka And 9th Highway Project In All
Bangalore, Februray 9, 2010 :
The consortium of GMR Infrastructure Limited and Oriental Structural Engineers Private Limited (OSE) has won the prestigious Hungund – Hospet highway project on a Build, Operate and Trasfer (Toll) basis thorugh the international competitive bidding route. GMR Group will hold 51% equity in the Consortium and 49% will be held by OSE. The Consortium received the Letter of Award from National Highways Authority of India (NHAI) on 8th February, 2010. This is ninth highway project of GMR Group after successfully completing six projects as per schedule. Two projects measuring 211 kms are currently under development.
The project measuring 99 kms on NH-13 with an estimated project cost of Rs. 1,700 Crores entails designing, engineering, finance, procurement, construction, operation and maintenance of four laning of the Hungund – Hospet section in the state of Karnataka. This will ease traffic congestion and provide a tremendous boost to trade and commerce in the state. Apart from reduction in travel time, this development is expected to improve safety levels for travelers since it will be built to world-class specifications.
Several national and international consortia participated in this bidding process in which GMR Group – OSE Consortium was adjudged as the preferred bidder. The project will be implemented through a Special Purpose Vehicle (SPV) set up by the Group which will be signing the concession agreement with the NHAI for a period of 19 years. All activities leading to the concession agreement signing have been initiated.
Commenting on the significance of the project, Mr. Srinivas Bommidala – Business Chairman (Urban Infrastructure & Highways) of GMR Group said, "the project is of strategic importance to us since it provides vital link in the movement of major industrial and tourist traffic across Karnataka. We are delighted to be a part of this development and are keen on ensuring that the project caters to the needs of multiple stakeholders"
GMR Group had entered the highways business in 2001 by winning two projects with benchmark annuity offer. It has even received an early completion bonus from the NHAI for completing the Tambaram-Tindivanam project in Tamilnadu ahead of schedule. Today, the Group has a balanced portfolio of four annuity and four toll projects (toll operations for three projects have already commenced) totaling 630 kms across the length and breadth of the country. All six projects have been completed as per schedule and two are currently under developmental stage.