GVK Power and Infrastructure terminated an agreement it had with the National Highways Authority of India (NHAI) to convert the Shivpuri-Dewas section of National Highway 3 into four lanes, involving 1,330 lane km.
In a filing at stock exchange, the firm said the termination of the agreement for the highway project in Madhya Pradesh was in line with clause 34.8 of the concession agreement.
The project is part of a vital trade corridor connecting western and central India to the northern parts of the country.
The company bagged the project from NHAI in January 2011 and this is said to be the biggest in the company’s transportation portfolio. Besides this one, the company has three projects — Jaipur-Kishangad, Deoli-Kota and Bagodara-Vasad.
The clause, according to experts, says a concessionaire or developer of a project can terminate the agreement if the nodal agency does not demonstrate enough initiative to fulfill responsibilities that are part of the agreement.
Some of NHAIÂ’s responsibilities include securing the land required and obtaining approvals, such as the environmental and forest clearances.
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