Toll collection on the 95-km Mumbai-Pune Expressway will continue for 4 years, 3 months and 22 days beyond the original concession period, which ends in August 2019, with the state agency in charge having given a new contract to IRB Infrastructure for additional construction and toll collection.
IRB Infrastructure is the incumbent toll collection agency for the Mumbai-Pune expressway. The company had purchased toll collection rights with an upfront payment of Rs 918 crore in 2004 and has a 15-year concession period valid till August 8, 2019.
The Maharashtra State Road Development Corporation (MSRDC) has now given a new contract to the company for additional works to expand capacity on the old Mumbai-Pune highway, and in return collect toll on the expressway on paying Rs 1,000 crore in installments to the corporation.
Six companies had bid for this contract. However, the MSRDC decided to pick IRB Infrastructure as the most preferred bidder as the company had quoted the lowest concession period of 8 years 8 months and 2 days, including the construction period. The concession period will commence on March 31, 2015.
“The construction works and payment of upfront premium installments to MSRDC have to be completed as prescribed in the bid till August 10, 2019. The toll collection for the project will commence from August 10, 2019, resulting into an effective tolling period of 4 years 3 months and 22 days,” IRB Infrastructure said in a statement to the Bombay Stock Exchange.
The company stated that the estimated project cost is approximately Rs 1,687 crore, including Rs 1,000 crore as upfront premium payable to MSRDC in four annual installments starting from March 31, 2015.
The capacity addition works on the old Mumbai-Pune highway consist of road widening from two to four lanes near Dehu Road, maintaining 12 km of service roads, constructing three three-lane flyovers, a rail over-bridge, and the widening of existing 8-lane toll booths to 12 lanes.