In the aftermath of the Bihar Assembly elections, where the incumbent chief minister, Nitish Kumar, won an overwhelming majority, Bihar’s road agenda is set to enter a new phase.
The state is set to have its first road construction and maintenance project based on the public private partnership (PPP) model. The project would extend from Bakhtiyarpur to Tajpur, along National Highway 38 (NH-38).
Of the 52.5-km stretch, 5.5 km will be a bridge and 47 km an approach road, requiring an investment of Rs 1,502 crore. Navayug Engineering Corporation Ltd (NECL), the concessionaire, will invest Rs 917.74 crore, while the Centre will invest Rs 277.5 crore and the state government Rs 307 crore.
The project is set to be implemented by the Bihar State Road Development Corporation (BSRDC), in partnership with NECL, a Hyderabad-based construction company.
“Construction of mega bridges is essential for connectivity in Bihar. At present, Bihar is equipped with 40 per cent of its overall bridge requirement. Also, given that maintenance is a cash-heavy prospect, we must engage the private sector,†BSRDC Managing Director P Amrit said.
BSRDC is the nodal agency for the implementation of road projects in the state. Constituted by Nitish Kumar in 2009, it is registered under the Companies Act, 1956, with a share capital of Rs 30 crore. For the project, the private partner would construct and maintain it over the next 30 years.
“While most of the work was carried out by the government in the initial phase of road development, we recognise the importance of engaging the private sector. A proposal incorporating PPPs, and Build Operate and Transfer road projects has been drafted and is awaiting cabinet approval,†said Amrit.
BSRDC to get $1,150-mn loan from ADB, Jica
BSRDC is also set to get a loan of $1,150 million from the Asian Development Bank and Japan International Cooperation Agency for road construction in 2010.
The loans to BSRDC are an extension of accolades that the state has received for the construction of 27, 000 km of roads under Chief Minister Nitish Kumar, who rode the road programme to victory in the Assembly elections last month.
When Nitish became the chief minister for the first time in November 2005, the state had only 384.6 km of roads, compared to 27, 000 km high-quality roads that it currently boasts of. “The plan outlay on roads forms around 30 per cent of the total state plan size, against a meagre 5-6 per cent in past years,†Amrit said.
Of the $1,150-million loan, ADB will lend BSRDC $300 million for the development of State Highways 90, 91 and 81, while Jica will provide a loan of $850 million for the development of National Highway 82.
“In the vision for Bihar roads, the chief minister has made it clear that the target would be to ensure a maximum travel time of 6 hours to Patna from the farthest boundary of the state. We hope to achieve this in the next 5 years,†Amrit added.
The Buddhist circuit that the Jica loan will be used to develop connects Bodh Gaya, which already has an international airport, with Nalanda and Rajgir, ending at Bihar Sharif.