» Business » HUDCO to fund Bihar's Ganga Expressway

HUDCO to fund Bihar's Ganga Expressway

April 23, 2013 14:54 IST

Much awaited construction work of Bihar's mega project the Ganga Expressway along the banks of the river here on the lines of Mumbai's Marine Drive, is all set to begin in November this year, Bihar Road Construction Minister Nand Kishore Yadav said on Tuesday.

"We hope that construction work will begin in November" Yadav said.

Yadav said that the tender had been floated and all formalities would be completed by June-end.

"The government had already begun process to speed up completion of all formalities to start construction work," he said.

The state government has decided to construct it with financial assistance from Housing and Urban Development Corporation (HUDCO).

“HUDCO has agreed to provide Rs 2,000 crore (Rs 20 billion) as loan for construction of Ganga Expressway to Bihar government” an official in chief minister office said.

Early this year the state government has sought financial assistance from the Asian Development

Bank for its ambitious project. “HUDCO has come forward to provide financial assistance for the project,” the official said.

Chief Minister Nitish Kumar has been taking keen interest in the project after it failed to attract private investors under Public-Private Partnership model.

According to officials of road construction department, tender has been invited for the project till May 20 and final selection will be made on June 24 this year.

Early this year, the state government had decided to construct the project on its own. “Due to global slowdown, private investors failed to come forward for the project, the state government's own agency will construct it now” Yadav said.

In August last year, the state government had approved the much-awaited 21.5-km long Deedarganj to Digha Ghat Ganga Expressway project.

The government also cleared the decks to acquire over 200 hectares of land for the project. The estimated cost of the project would be Rs.2,234.46 crore (Rs 22.34 billion) and is likely to be completed within four years.

M I Khan in Patna