Ashoka Buildcon L1 Bidder for 2,791 Cr. of Highway Projects in West Bengal

Ashoka Buildcon Ltd. has emerged as the Lowest (L1) bidder for executing two highway projects worth a total of Rs. 2,791 crore for National Highways Authority of India (NHAI). Both these projects are to be executed on NH 116A in West Bengal. This information was conveyed by Ashoka Buildon in its stock filing dated 18th November 2024.

First of these two projects involves development of a four-lane Economic Corridor from Kharagpur to Chandrakona-Ghatal Road Crossing, covering a stretch from Km 0.000 to Km 41.000 on NH 116A. Ashoka Buildcon has bid Rs. 1,400 crore for this project, which is significantly higher than NHAI’s estimated cost of Rs. 984.86 crore. This highway project comprises Package-1 of the works under Kharagpur-Siliguri Economic Corridor, which is under Bharatmala Pariyojana.

The second project is for the construction of a four-lane Economic Corridor from Bowaichandi to Guskara-Katwa Road Section, spanning from Km 89.814 to Km 133.000 on NH 116A. Ashoka Buildcon has quoted Rs. 1,391 crore for this project against NHAI’s estimate of Rs. 1,231.32 crore for the same. This highway section constitutes Package-3 of the Kharagpur-Siliguri Economic Corridor.

Both projects will be executed under the Hybrid Annuity Mode (HAM)* and are expected to be completed within 910 days (about 2 years and 6 months).

Kharagpur-Siliguri Economic Corridor is of prime importance as it will connect Kharagpur, which is situated west of Kolkata, to Bagdogra through Ghatal, Arambagh, Burdwar, Nabadwib, Plassey, Behrampore, Farakka, Malda, Raiganj, Kishanganj and Islampur.

*Hybrid Annuity Model (HAM) refers to a mode of Public-Private-Partnership (PPP) wherein the government and the private player share project expenses in a 40:60 ratio respectively. After the private player develops the project, it is handed over to the government. The government pays a fixed annuity to the private player for a certain amount of time as defined in the contract.