Dilip Buildcon declared lowest bidder for Rs 5,390 cr NHAI projects

Road developer Dilip Buildcon said it has been declared the lowest bidder for three projects of the National Highways Authority worth Rs 5,390 cr in total.

The first two projects are for six-laning a 117.3 km stretch of the Bangalore-Mysore NH 275, while the third one is for the six-laning of NH 2 from Khairatunda to Gorhar in Jharkhand, a distance of 40.2 km.

The Bangalore-Mysore projects are worth Rs 2,190 cr and Rs 2,280 cr, while Jharkhand stretch is worth Rs 917 cr.

However, the company won’t be reimbursed its expenses immediately, as these are hybrid annuity projects.

In other words, it will get only a tiny percentage of its total expense initially, and nearly all of the costs have to be recovered from tolls.

The Karnataka projects have to be completed in 30 months. The company will be allowed to operate the stretch for 15 years and recover its costs during this period.

The Jharkhand project will be completed in 24 months and will also be operated by the company for 15 years.

The company has only qualified as the lowest bidder and has not yet received the letter of award of the contracts.

These announcements come a day after Dilip Buildcon said it was awarded Rs 1,050 cr worth of projects in UP and Karnataka.

On Wednesday, it was also reported that the company had emerged as the lowest bidder for hybrid annuity road project valued at Rs 2,013 cr in Andhra Pradesh.