The cabinet committee on economic affairs (CCEA), chaired by the Prime Minister Narendra Modi, has approved the development of four-laning of 'Cuttack-Angul' Section of National Highway NH-42 in Odisha under the National Highways Development Project (NHDP) Phase III in BOT (Toll) mode on Design, Build, Finance, Operate and Transfer (BOT/ DBFOT) basis. The total project cost(TPC) estimated for the project will be around Rs 1,576 crore and the length is 112 Km.
The project aims to expedite the improvement of infrastructure in the state and also in reducing the time and cost of travel for traffic, particularly heavy traffic, plying between 'Cuttack-Angul' section. The maximum grant from the government for Viability Gap Funding (VGF) would be 40% of the TPC.
Public Private Partnership Approval Committe (PPPAC) had earlier in its 46th meeting held in September, 2011 granted approval for the road and it was approved by the erstwhile CCI in its meeting held in November, 2011. The project was awarded at premium of Rs 61.09 crore to M/s Ashoka Buildcon Ltd and the Concession Agreement was signed in March, 2012. However, due to non-fulfillment of condition precedents by the NHAI as per the provisions of the concession agreement i.e. procurement of 80% of land, environment/forest Clearance etc. within 180 days of signing of the concession agreement, the concession agreement was terminated on mutual consent.
PPPAC in its 72nd meeting held in April, 2015 has again accorded approval for four-laning of the 112-km long road.