Guwahati Ring Road Project Gets Mega Funding Of Rs 5,729 Crore, See Likely Timeline

In a significant push to enhance connectivity in the North-East region, the National Highways Authority of India (NHAI) has signed a concession agreement with Dinesh Chandra R. Agrawal Infracon Pvt. Ltd. for the development of the Guwahati Ring Road. The 121-km-long project will be developed at a total cost of Rs 5,729 crore under the Build-Operate-Toll (BOT) mode with a concession period of 30 years, including a four-year construction period.

Notably, the Assam state government will bear 50 percent of the land acquisition cost, provide royalty exemptions on aggregates, and will also contribute the state portion of GST, amounting to approximately Rs 1,270 crore. 

With these contributions, the gross project cost stands at around Rs 7,000 crore.

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Infra boost in NE India

According to the road transport ministry, the project is expected to decongest Guwahati City by diverting major traffic, particularly vehicles plying between West Bengal, Bihar, Silchar, Nagaland, and Tripura. The new corridor will also provide seamless connectivity to important towns like Siliguri, Silchar, Shillong, Jorhat, Tezpur, Jogigopha, and Barpeta, according to the ministry. 

“The Guwahati Ring Road will provide seamless connectivity to long-distance traffic plying on the East-West Corridor of NH-27, which is the gateway to North-East Region of the country,” as per the statement by road transport ministry. 

It is pertinent to note that the Guwahati Ring Road is the first contract signed under the recently modified Modal Concession Agreement (MCA) for BOT (Toll) projects, The government has been actively promoting BOT (Toll) projects to ensure long-term private sector investment in the construction, operation, and maintenance of national highways. 

As a part of Government of India’s ‘Vision 2047’, a large number of high-speed corridors are envisaged to be developed. Robust Public Private Partnership (PPP) in development of road sector will play a pivotal role in realizing this vision and will greatly contribute towards the development as well as Operations and Maintenance of the world class National Highway Network in the country, as per the ministry.