GMR Group Emerges As Lowest Bidder For Chennai Outer Ring Road Project
Bangalore, 19th June, 2009:
The GMR Group led consortium has emerged as the lowest bidder in an international competitive bid for the Chennai Outer Ring Road (ORR) project in Tamilnadu on a Design, Build, Finance, Operate and Trasfer (Annuity) basis. The Letter of Award is expected to be issued by the Government of Tamilnadu in the next few days. This is the Group’s first state highway project. It has successfully completed six national highway projects as per schedule and has recently won the 181 kms long Hyderabad-Vijayawada stretch.
The Chennai Outer Ring Road project measuring 29.65 kms entails design, construction, development, finance, operation and maintainance of the six lane and two service lanes from the Vandalur to Nemilicheri section in the state of Tamilnadu. The total cost of the project is estimated to be around Rs. 1,100 crore. The concession period is for 20 years which includes a construction time of 30 months.
Commenting on the significance of the project, Mr. O Bangaru Raju, Managing Director of GMR Highways Private Limited and Director of GMR Infrastructure Limited said, “this Greenfield project will ensure smooth flow of traffic and will be built to world class standards. Once completed this will give a tremendous boost to real estate development and trade and commerce in the region.”
GMR Group had entered the highways business in 2001 by winning two projects with a 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 three annuity and three toll projects (toll operations for two projects have already commenced) totaling 420 kms across the length and breadth of the country. All six projects have been completed as per schedule including the Tindivanam – Ulundurpet project which will commence toll operations shortly.