Eight months on\, Kozhikode bypass widening hanging fire

Kozhikod

Eight months on, Kozhikode bypass widening hanging fire

Narrow stretch: A view of the Kozhikode bypass between Thondayadu and Malapparambu junctions.

Narrow stretch: A view of the Kozhikode bypass between Thondayadu and Malapparambu junctions.  

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Uncertainty looms large over project after implementing agency’s failure to secure bank guarantee

The conversion of the 28-km Kozhikode bypass into a six-lane carriageway is facing uncertainty as the Hyderabad-based company which secured the contract for the multicrore project eight months ago has failed to get bank guarantee for the work.

The Ministry of Road Transport and Highways had inked an agreement with Krishna Mohan Construction Private Limited (KMC) for ₹1,710 crore in August. However, the company was unable to secure a bank guarantee of ₹85.50 crore.

Speaking about the uncertainty, a senior official said the National Highways Authority of India (NHAI) and the State government were struggling to wriggle out of the crisis. One of the suggestions is the formation of a consortium to start the project without delay. Another proposal is a joint venture partnership involving the contracting company.

However, sources said the NHAI had to give permission for the proposals. Discussions between officials and company representatives have not yielded any positive results so far. A final decision would be taken only after the Lok Sabha elections. There is also a confusion over floating new tenders as already a contract has been signed.

Four companies, including the Vadakara-based Uralungal Labour Contract Cooperative Society (ULCCS), had bid for the project said to be the largest of NHAI projects in terms of cost per km.

The conversion of the Kozhikode bypass into a six-lane carriageway is part of the National Highway Development Project Phase III that will be executed in the hybrid annuity mode in which the government will share 40% of the cost to start work while the remaining investment has to be made by the contractor. In fact, the construction should have commenced in September last after the contract was signed.

The delay in the construction of the bypass stretching from Vengalam to Idimuzhikkal on National Highway 66 is leading to massive traffic blocks in the corridor though two flyovers have been opened at Thondayad and Ramanattukara recently. The sector also witnessed a spurt in traffic volume following the demolition of the bridge across the Korapuzha river on the old National Highway 66.

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