Press Information Bureau

Government of India

Cabinet Committee on Economic Affairs (CCEA)

17-January-2013 13:46 IST

The Cabinet Committee on Economic Affairs today approved the widening of NH-232 to two-lanes with paved shoulders from Tanda to Banda in the state of Uttar Pradesh at an estimated cost of Rs.1118.79 crore. The project will be executed by the National Highways Authority of India (NHAI) on Engineering Procurement and Construction (EPC) mode. The project will be executed in two packages viz.

(i) Tanda to Raebareli and

(ii) Raebareli to Banda.

The length and cost of Tanda to Raebareli sector will be 155.91 km and Rs.648.15 crore respectively while in the Raebareli-Banda sector it will be 133.285 km and Rs.470.64 crore. The project will be completed within two and half years from the date of start of work.

These projects are to be implemented on the new Model EPC document. The main objective is to ensure implementation of the project to specified standards with a fair degree of certainty relating to cost and time, while transferring the construction risk to private sector agencies. By the use of the model EPC contract document, it is intended that it shall enable the contractual framework for construction of highways in an efficient, economical and competitive environment. It will minimize, if not completely eliminate, the time and cost over-run characteristic of conventional item rate contracts. Further, it is expected to bring acceleration in execution of highway projects with least cost and greater efficiency.

With up-gradation of this highway to 2-lane with paved shoulders by overall improvement of the highway, smooth and safe traffic flow will be ensured between Tanda to Banda and substantial gain in terms of reduced Vehicle Operating Cost (VOC) and reduced travel time would be achieved. In addition, implementation of the project would result development of basic infrastructure in the region which would ultimately lead to the overall economical development.

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SC/SK

Model EPC contract driving NH 232 upgradation to two lane with paved shoulders, shifting construction risk and improving delivery timelines. Approval authorises upgradation of NH 232 (Tanda-Raebareli-Banda) to two lanes with paved shoulders, to be executed by NHAI in two packages under the Model EPC contract, transferring construction risk to private contractors and targeting completion within two and a half years while promoting cost time certainty and accelerated, efficient delivery.