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Construction : Web Exclusive | October 2018 | Source : CW-India

What is the satellite town ring road project? Read here for details!

The National Highway Authority of India (NHAI) is expected to issue bids for civil works related to the satellite town ring road (STRR) project by March next year. Four-fifths of the land required for the first phase of the project will reportedly be acquired by NHAI by that time period.

The STTR will have a proposed length of 367 km around Bengaluru, of which 240 km will be expressway, to be built by NHAI. The STRR will connect eight major satellite towns around Bengaluru. The project is estimated to cost around Rs 55 billion excluding land costs, and is being executed under the hybrid annuity (HAM) model.

As reported, the pockets left out by NHAI to be completed, is being executed by the Karnataka State Highway Improvement Programme (K-SHIP). NHAI has set a target of three years to complete the first phase. This includes the 82-km stretch between Dobbspet and Ramanagara. K-SHIP is constructing another 30-km stretch between Dobbspet and Magadi.

NHAI has reportedly categorised the STRR project in three stages. NHAI is to take up Phase-3 ahead of Phase-2, and work on the second phase will reportedly start next year. According to reports, the 56-km Phase-2 has been kept on hold, since it dissects the boundaries of the Bannerghatta National Park.

Through the HAM mode, NHAI will finance 60 per cent of the project cost, while the balance equity will be funded by the partner. The model is expected to attract several bids. The banks are also expected to respond positively to fund the project. The developer is going to enjoy a fixed return rate for the investment made. The toll risk, handled by the NHAI, will not have to be carried by the developer.

Encouragement to economic activity along the corridor, as well growth outside Bengaluru will be propelled by the 70-m wide NHAI expressway. As reported, the notification to possess 70 per cent of the land has already been issued. The biggest concern that still remains is that close to 12,300 trees may require felling for the first phase of the project. According to reports, 150 to 200 trees might be cut down on an average, for every kilometre. The NHAI, however, has assured to control the loss of trees by restricting felling within the formation width.

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