Ashoka Buildcon has declared February 11, 2025, as the Commercial Operation Date for an additional 8.595 km stretch of its Hybrid Annuity Mode project on National Highway-206. This development adds to the 41.61 km stretch already receiving First CoD.
National Highways Authority of India. The project involves the four-laning of the Tumkur-Shivamogga section from Ka. Ashoka Buildcon Limited, a prominent infrastructure development company in India, has achieved significant milestones in the development.
Tumkur-Shivamogga Highway in Karnataka. The project, aimed at enhancing connectivity and supporting economic growth in the region, has been divided into multiple packages, with the company securing Commercial Operations Dates (CoDs) for both Package II and Package III.
Package II: Karadi-Banwara Section
On September 8, 2023, Ashoka Buildcon received the CoD for Package II of the Tumkur-Shivamogga Four-Laning Road Project. This package encompasses a 41.61 km stretch from Karadi to Banwara on National Highway 206 (NH-206). The project was executed by.
Ashoka Karadi Banwara Road Private Limited, a wholly-owned subsidiary of Ashoka Concessions Limited, under the Hybrid Annuity Mode (HAM) as part of the Bharatmala Pariyojana initiative. The total sanctioned cost for this package was ₹12.25 billion.
Package III: Banwara-Bettadahalli Section
Subsequently, on October 17, 2023, the company declared the CoD for Package III, covering a 48.51 km stretch from Banwara to Bettadahalli on NH-206. This segment was undertaken by Ashoka Banwara Bettadahalli Road Private Limited, another wholly-owned subsidiary.
Ashoka Concessions Limited. Similar to Package II, this project was implemented under the Hybrid Annuity Model as part of the Bharatmala Pariyojana, with an estimated cost of ₹9.066 billion.
Project Overview and Significance
The Tumkur-Shivamogga Highway project is a critical infrastructure initiative aimed at improving transportation efficiency between Tumkur and Shivamogga in Karnataka. The project’s division into multiple packages allowed for focused.
execution and timely completion. The successful completion and operationalization of Packages II and III are expected to significantly enhance regional connectivity, reduce travel time, and bolster economic activities in the area.
Hybrid Annuity Model (HAM) and Bharatmala Pariyojana
Both packages were executed under the Hybrid Annuity Model, a public-private partnership framework that combines elements of the traditional item-rate contract and Build-Operate-Transfer (BOT) models. Under HAM, the government and the private sector share the project cost, reducing the financial burden on both parties and mitigating risks associated with revenue generation. This model has been instrumental in attracting private investments into highway projects across India.
The projects are also part of the Bharatmala Pariyojana, a centrally-sponsored and funded road and highways project of the Government of India. This program focuses on optimizing the efficiency of freight and passenger movement across the country by bridging critical infrastructure gaps.
Future Prospects
With the commencement of commercial operations for these packages, Ashoka Buildcon is poised to receive annuity payments from the National Highways Authority of India (NHAI) over a 15-year operational period, with disbursements occurring at six-month intervals. This steady revenue stream underscores the financial viability of the projects and reflects the company’s commitment to contributing to India’s infrastructure development.
The successful execution of these projects not only enhances Ashoka Buildcon’s portfolio but also sets a benchmark for future infrastructure endeavors in the country. The improved highway infrastructure is anticipated to stimulate economic growth, facilitate smoother transportation, and improve the overall quality of life for residents in the region.
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Construction, Infrastructure and Mining
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