By Bizodisha Bureau, New Delhi, September 22, 2015 : The Narendra Modi government on Tuesday cleared a proposal for the four-laning of the Cuttack-Angul section of National Highway-42 in Odisha, at a total cost of Rs.1,575.38 crore. 

The Cabinet Committee on Economic Affairs (CCEA) which met here took this decision to develop the 112-km stretch of NH-42.

A CCEA statement said the approval was given under the National Highways Development Project’s (NHDP) Phase-III on design, build, finance, operate and transfer (DBFOT) basis in BOT (build, operate and transfer) -toll mode.

“Bids have been invited on the basis of provisions of the model concession agreement subject to such changes as accepted by the PPPAC (public-private partnership approval committee),” the statement said.

“Maximum grant from the government for viability gap funding (VGF) would be 40% of the total project cost,” the statement added.

In March, 2012 the project for four-laning of the ‘Cuttack-Angul’ section of NH 42 was awarded to Ashoka Buildcon.
However, due to non-fulfilment of condition precedents by the NHAI (National Highways Authority of India), the previous concession agreement was terminated on mutual consent.