GMR Infra bags Chennai ring road project

Bangalore-based GMR Infrastructure Ltd has obtained the Chennai Outer Ring Road project in Tamil Nadu from the state government with a bid of Rs1,100 crore.

The 29.65-km ORR will connect Vandalur and Nemilicherry and pass through three national highways. The much-awaited project will go a long way in reducing traffic congestion in the city.

This is the eighth road project and first state highway project bagged by the GMR's highways division since 2001.

The GMR-led consortium emerged as the lowest bidder in an international competitive bid for the project on a 'design, build, finance, operate and transfer' on annuity basis. The letter of award is expected to be issued in the next few days, the company said in a press release.

Under the terms of the project, the company will get a concession for 20 years, which includes a construction time of 30 months. The Tamil Nadu government will release a grant of Rs300 crore to GMR, and it would be paying about Rs124.26 crore as annuity per year during the 20-year period.

Commenting on the project, O Bangaru Raju, managing director, GMR Highways Pvt Ltd said, ''This greenfield project will ensure smooth flow of traffic and will be constructed with world class standards. When completed, it will give a tremendous boost to real estate development and trade and commerce in the region.''

When completed in 2012, the ORR will link three national highways - NH-4 (Chennai-Bangalore) at Nazarathpet, NH-45 (Chennai-Trichy) at Vandalur and NH-205 (Chennai-Arakonam) at Nemilichery.

"The project will help ease the traffic congestion within the city. Trucks and other heavy vehicles will be able to pass through without entering the city. The ORR will have six lanes and two service lanes," Raju said.

The project was envisaged by the Chennai Metropolitan Development Authority (CMDA) to decongest the city and also spur development on the city outskirts. GMR will begin construction by February next year and will complete it in two and half years from commencement.

Land acquisition is almost complete and the project is being overseen by the Tamil Nadu Road Development Corporation, Raju said.

"We will be signing the MoU for the project with the state government in the first week of July and a special purpose vehicle for the execution of the project will be formed. A concession agreement has to be entered into with the government and after which a financial closure will be done and the construction will begin,'' Raju said.