National Highways Authority of India (NHAI) has announced that H.G. Infra Engineering Ltd. (HGIEL) is the lowest (L1) bidder for Karnal Ring Road project in Haryana. HGIEL had quoted Rs. 997.11 crore for the project, as against an estimated cost of Rs. 743.74 crore.
Scope of work under the contract entails construction of a greenfield six-lane highway connecting NH-44 near Shamgarh village with Karnal Munak road (MDR-115) near Samalakha village. Length of this new road will be 34.50 Km, and the project will be executed under HAM* in a period of 730 days.
*Hybrid Annuity Model (HAM) refers to a mode of Public-Private-Partnership (PPP) wherein the government and the private player share the 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.