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Vizag Port Road Co floats tenders

THE Vizag Port Road Co, a joint venture formed between Vizag port and the National Highways Authority of India (NHAI) for the construction of a road from the port to the National Highway-5, has floated tenders for execution of the Rs 80-crore project. The last date for the submission of tenders is March 5.

Sources told Business Line that the company is looking for offers from a consortium of companies to handle the entire project. The response so far has been encouraging, the sources said.

Initially, the port wanted to execute the project by itself, but later decided against it due to the ``financial crisis'' imposed by the recent wage revision. It subsequently decided to team up with NHAI with equal stake. According to the sources, NHAI p lans to raise 50 per cent of its stake (Rs 20 crore) through a bond issue, while Vizag port plans to tap the money market for mobilising part of its share of Rs 40 crore. The connectivity to NH-5 is expected to significantly boost cargo evacuation from t he port and help bring in more container traffic to the port because of easier movement of containers. -- Our Bureau