Construction of 4-Lanning of Badnawar-Petlawad-Thandla-Timarwani section of (NH-752D) in the state of Madhya Pradesh on Hybrid Annuity Mode under NH(O)” in two package.

Subject: Record of Discussion of the 138th mee(cid:415)ng of the PPPAC for considering the proposal, “Construc(cid:415)on of 4-Lanning of Badnawar-Petlawad-Thandla-Timarwani sec(cid:415)on of (NH-752D) in the state of Madhya Pradesh on Hybrid Annuity Mode under NH(O)” in the following two packages: a. Package-1: Construc(cid:415)on of 4 Lanning of Badnawar-Petlawad-Thandla-Timarwani sec(cid:415)on of (NH-752D) from Badnawar Bypass Ch. 70+400 to Village Temaria Ch. 114+400 in the state of Madhya Pradesh on Hybrid Annuity Mode under NH(O) b. Package-2: Construc(cid:415)on of 4 Lanning of Badnawar-Petlawad-Thandla-Timarwani sec(cid:415)on of (NH-752D) from Village Temaria Ch. 114+400 to Timarwani Interchange of Delhi Mumbai expressway (NE-4) Ch. 150+850 in the state of Madhya Pradesh on Hybrid Annuity Mode under NH(O) 1. The 138th mee(cid:415)ng of the PPPAC was held on 06th January 2026 at 12:00 hours to consider the above-men(cid:415)oned proposal of MoRTH. 2. List of a(cid:425)endees is placed at Annexure-I. 3. With the permission of Secretary (EA), Joint Secretary (IFS) welcomed all the a(cid:425)endees to the mee(cid:415)ng. NHAI made a detailed presenta(cid:415)on on the proposed road project. 4. The details of the project are given in the table below: Table-1: Details of the project Construc(cid:415)on of 4-Lanning of Badnawar-Petlawad-Thandla-Timarwani sec(cid:415)on of (NH-752D) in the state of Madhya Pradesh on Hybrid Annuity Mode under NH(O) in the following two packages: Package-1: Construc(cid:415)on of 4 Lanning of Badnawar-Petlawad-Thandla- Timarwani sec(cid:415)on of (NH-752D) from Badnawar Bypass Ch. 70+400 to Project Village Temaria Ch. 114+400 in the state of Madhya Pradesh on Hybrid Descrip(cid:415)on Annuity Mode under NH(O) Package-2: Construc(cid:415)on of 4 Lanning of Badnawar-Petlawad-Thandla- Timarwani sec(cid:415)on of (NH-752D) from Village Temaria Ch. 114+400 to Timarwani Interchange of Delhi Mumbai expressway (NE-4) Ch. 150+850 in the state of Madhya Pradesh on Hybrid Annuity Mode under NH(O) PPP Model Hybrid Annuity ModeSponsoring Ministry of Road Transport and Highways, Government of India Authority Implemen(cid:415)ng Na(cid:415)onal Highways Authority of India (NHAI) Agency State: Madhya Pradesh Loca(cid:415)on District: Dhar and Jhabua Type of Flexible Pavement Pavement Lane configura(cid:415)on 4-Lane divided highway S. No Descrip(cid:415)on Package-1 Package-2 Total 1. Length 44.000 km 36.450 km 80.45 km 2. Lane configura(cid:415)on 4 Lane with 4 Lane with 4 Lane with paved paved paved shoulder shoulder shoulder 3. Major Bridge 03 Nos 03 Nos 06 Nos 4. Minor Bridges 12 Nos. 22 Nos. 34 Nos 5. Culverts 117 Nos. 92 Nos. 209 Nos 6. Flyover/Overpass/ Nil 1 Nos.-RUB 1 Nos.-RUB ROBs/RUB Details of Structures 7. Grade Separated 04 Nos. – 05 Nos. – 09 Nos. – Structures VUP VUP VUP 13 Nos.- LVUP 16 Nos. – 29 Nos – LVUP LVUP 01 Nos.- 03 Nos. – 04 Nos – SVUP SVUP SVUP 00 Nos.- VOP 02 Nos. – 02 Nos – VOP VOP 8. Structure over Gail 01 No. - 01 Nos. Pipeline 9. Major Junc(cid:415)ons 03 Nos. 09 Nos. 12 Nos.10. Minor junc(cid:415)ons 24 Nos. 35 Nos. 59 Nos. 11. 34.118 (incl. 36.720 (incl. 70.838 (incl. Length of Slip Road BHS) BHS) BHS) 12. Length of Service 5.276 (incl. 2.386 (incl. 7.662 (incl. Road BHS) BHS) BHS) 13. Bypass - 03 Nos. 03 Nos. 14. Bus Shelter 33 Nos. 38 Nos. 71 Nos. 15. Truck Lay-byes 02 Nos. 02 Nos. 04 Nos. 16. Rest Area Nil Nil Nil 17. Traffic in PCU (2025) 15128 15128 15128 18. IRR with LA cost 8.69% 9.68% Nil 19. IRR without LA cost 9.86% 10.66% Nil 20. Toll Plaza 1 nos. Nil 1nos. Concession Period 17 years (including 02-year construc(cid:415)on period) Package-I Package-II S. No Details (Amount in crore) 1. Civil Construc(cid:415)on Cost 737.99 766.51 2. U(cid:415)lity Shi(cid:332)ing Cost 42.17 30.44 Civil Construc(cid:415)on Cost (i/c U(cid:415)lity Es(cid:415)mated Capital 3. 780.17 796.95 Shi(cid:332)ing) Cost with Break- up under major 4. IC & Pre-Opera(cid:415)ve Exp @ 1% 7.80 7.97 heads of Financing Cost (0.75% of debt amount expenditure 5. 4.00 4.00 subject to Min Rs. 4 crore) 6. Interest During Construc(cid:415)on 31.76 32.68 Es(cid:415)mated project cost (Excl. GST) 7. 823.73 841.60 (3+4+5+6) 8. GST @ 18% on Civil Construc(cid:415)on cost 140.431 143.4519. Es(cid:415)mated project cost (incl. GST) (7+8) 964.16 985.05 10. BPC (excl GST) 928.20 940.78 11. Con(cid:415)ngencies @ 1.5% of Civil Cost 11.07 11.50 Escala(cid:415)on during construc(cid:415)on @ 7% of 12. 54.61 55.79 (3) Maintenance Cost for 15 Years @ 15% 13. 123.56 126.24 of (7) 14. Interest on Annuity @ 50% of (7) 411.87 420.80 15. 18% GST on (10+11+12+13+14) 275.28 279.92 16. Supervision charges @ 1% of (7) 8.24 8.42 Land acquisi(cid:415)on & other pre- 17. 119.76 67.03 construc(cid:415)on cost 18. Total Capital Cost 1932.58 1910.47 Descrip(cid:415)on Package-1 Package-2 Proposed ROW 45m -55m 45m -55m Exis(cid:415)ng ROW 20-23 m 20-23 m Total Land Required 218.0 204.22 (in Ha.) Land already in 40.0 65.11 Possession (in Ha.) Land Acquisi(cid:415)on and other Addi(cid:415)onal Land clearance Acquisi(cid:415)on required 107.20 139.11 (in Ha.) Forest Area (in Ha.) 0.993 20.552 Govt. Land (in Ha.) 111.29 31.67 Private Land (in Ha.) 107.20 107.43 100% published on 100% published on 3(A): 03.09.2025 03.09.2025verified by Cala and verified by Cala and 3(D): uploaded on Bhoomi uploaded on Bhoomi Rashi portal* Rashi portal* Par(cid:415)culars Package-I Package-II PIRR 10.41% 10.41% Financial Viability EIRR 12% 12% The project is proposed to be implemented as per Model Concession Concession Agreement dated 09.12.2016 and its subsequent amendments uploaded Agreement on MoRTH web site. Bidding Lowest Bid Project Cost parameter Bidding process Single Stage Two-part system of bidding 5. The primary purpose of proposed project is to provide seamless connec(cid:415)vity to the Simhasth Kumbh Mela at Ujjain which is scheduled for April 2028. The proposed project shall be the shortest route from Gujarat and Maharashtra to Ujjain. Addi(cid:415)onally, the proposed project traverses through the tribal regions of Dhar and Jhabua districts, facilita(cid:415)ng improved connec(cid:415)vity and socio-economic upli(cid:332)ment of key se(cid:425)lements, including Badnawar, Kardawad, Petlawad, Thandla, and Timarwani. Addi(cid:415)onally, the project would also provide connec(cid:415)vity to PM Mitra Park at Bhainsola village in Dhar district. The projected traffic on the proposed corridor is about 15,128 PCUs in 2025 and is expected to cross 46,464 PCUs by 2048. 6. The instant project entails brownfield expansion of the exis(cid:415)ng intermediate lane (5.5m) of Badnawar–Timarwani road to four-lane standards. The proposed alignment reduces the overall project length from 88.33 km to 80.45 km, thereby achieving an end-to-end distance reduc(cid:415)on of 7.88 km, which shall provide direct and faster access to the Delhi–Mumbai Expressway. This improved linkage will reduce travel (cid:415)me (approx. 1 Hour), lower logis(cid:415)cs costs, and facilitate efficient movement of raw materials and finished goods. 7. The instant proposal is proposed to be developed in two separate packages. Package- I includes construc(cid:415)on of 4-Lanning from Badnawar Bypass Ch. 70+400 to Village Temaria Ch. 114+400 and Package-II includes construc(cid:415)on of 4 Lanning from Village Temaria Ch. 114+400 to Timarwani Interchange of Delhi Mumbai expressway (NE-4)Ch. 150+850 in the state of Madhya Pradesh. The project will be executed under the HAM model with a Total Capital Cost of Rs.1932.58 crore for package -I and Rs. 1910.47 crore for package-II. The project is included under the NH(O) for the FY 2025-26. The financial assessment indicates the project IRR for both the packages as 10.41% and the equity IRR for both the packages as 12%. 8. A(cid:332)er the detailed presenta(cid:415)on, the Chair asked the PPPAC members for their observa(cid:415)ons. DoLA supported the proposal and stated that no further comments to offer. 9. DD, Department of Expenditure raised the following observa(cid:415)ons: a. For Package-I, the GST considered is 19.34% instead of 18%. The same may be revised to 18%. b. The Package-II has a shorter project length (36.45 km) as compared to Package- I (44 km); however, the civil construc(cid:415)on cost of Package-II is higher than the Package-I. The ra(cid:415)onale for the same to be provided. 10. PD, NITI Aayog raised the following observa(cid:415)ons: a. The PPPAC proposal is for 4-lane greenfield highway for 80 km and is proposed to bid the project in two packages. To obtain the economies of scale and get a beneficial offer, it is suggested to bid out the project in a single package. b. The proposed project highway includes 78.5 km of slip/service road which is almost equivalent to the en(cid:415)re project stretch. Addi(cid:415)onally, Package-I includes 3 at-grade major junc(cid:415)ons and 24 at-grade minor intersec(cid:415)ons and Package-II includes 5 at-grade major junc(cid:415)ons and 14 at-grade minor intersec(cid:415)ons. In this regard, Ministry to review and op(cid:415)mize the junc(cid:415)ons and jus(cid:415)fy the need for 78.5 km of slip/service road. c. PPPAC memorandum indicates that the es(cid:415)mates for shi(cid:332)ing of u(cid:415)li(cid:415)es are under prepara(cid:415)on by the concerned departments. Whether the es(cid:415)mates have been received from the respec(cid:415)ve u(cid:415)lity shi(cid:332)ing agencies? Further, Schedule B need to clearly indicate the details of u(cid:415)li(cid:415)es that need to be shi(cid:332)ed or relocated and the approved plan for reloca(cid:415)on from the concerning u(cid:415)lity authori(cid:415)es. d. There are 12 major junc(cid:415)ons and 59 minor junc(cid:415)ons in the proposal. MoRTH may op(cid:415)mize the number of structures. 11. JS (IFS) highlighted the following observa(cid:415)ons:a. The per km cost of the proposed project packages are rela(cid:415)vely higher in comparison with the nearby projects. The ra(cid:415)onale for the same to be provided. b. The debt-to-equity ra(cid:415)o considered in Package-I and Package-II is different. The same has to be aligned as per the latest MoRTH/NHAI circular. c. The project is not an access-controlled proposal, however, in the discussions it was highlighted that the road is func(cid:415)onally access-controlled. What is meant by func(cid:415)onally access-controlled? 12. The Chair made the following observa(cid:415)ons: a. How does the exis(cid:415)ng traffic currently move from the star(cid:415)ng point to the endpoint? b. What would be the total length from the Delhi–Mumbai Expressway interchange to Ujjain a(cid:332)er the proposed development? c. Why is the project proposed under the HAM instead of the BOT model? d. There is a total of 71 bus shelters proposed in the project. What is the ra(cid:415)onale behind having such a large number of bus shelters? 13. MoRTH submi(cid:425)ed the following to the queries raised by the PPPAC Members: - a. The GST on Civil Construc(cid:415)on Cost for Package-1 has been recalculated at 18%. b. The civil construc(cid:415)on cost of Package-2 is higher than Package-1 mainly due to the requirement of improving three bypasses of 14.9 km, provision of addi(cid:415)onal structures such as 22 nos. minor bridges, 26 nos. flyovers/underpasses etc., and requirement of addi(cid:415)onal RE and retaining walls, Rail Under Bridge etc. Addi(cid:415)onally, the challenging hilly terrain also increases the civil construc(cid:415)on cost in comparison to Package-I, which is largely plain/rolling terrain. c. The corridor is divided into two packages (44 km and 36.45 km) to enable parallel execu(cid:415)on and ensure (cid:415)mely comple(cid:415)on before Simhastha in March 2028. Combining into a single package would increase length and cost, poten(cid:415)ally reducing bidder par(cid:415)cipa(cid:415)on and compe(cid:415)(cid:415)on. Two manageable packages are expected to a(cid:425)ract a wider bidder pool, improve bid outcomes, and allow faster execu(cid:415)on, with both packages likely completed within two years before the Simhastha. d. The indicated 78.5 km primarily refers to slip roads at grade-separated structures, not con(cid:415)nuous service roads. Slip roads totalling about 70.84 km are proposed atVUPs, LVUPs, SVUPs, and major/minor junc(cid:415)ons to ensure safe merging/diverging and local connec(cid:415)vity. The service roads are only 7.66 km and is loca(cid:415)on specific. e. The es(cid:415)mates of u(cid:415)lity shi(cid:332)ing have been received & the details of u(cid:415)lity shi(cid:332)ing shall be provided under Schedule-B of the DCA. f. The number of 12 major junc(cid:415)ons and 59 minor junc(cid:415)ons shall be op(cid:415)mized. g. The higher per km cost is due to the use of the latest MP-PWD SOR (11.04.2025), whereas nearby projects were based on the 2017 SOR, resul(cid:415)ng in cost escala(cid:415)on. Addi(cid:415)onally, the instant proposal includes enhanced project features as per revised MoRT&H/NHAI circulars and policies. However, the overall cost remains within norma(cid:415)ve cost. h. The debt-to-equity ra(cid:415)o for both packages has been revised and aligned with the latest MoRTH/NHAI circular. i. The project is not access-controlled however has been designed in such a way that it has limited entry and exit points. j. Currently, the project road operates as an intermediate lane configura(cid:415)on. The design speed of the exis(cid:415)ng road is limited to 30–50 km/hr due to several deficiencies, including inadequate horizontal curve radius and insufficient sight distance. These geometric constraints significantly impact traffic flow and safety. k. Upon comple(cid:415)on of the proposed Badnawar–Petlawad–Thandla–Timarwani sec(cid:415)on, the total length from the Delhi–Mumbai Expressway interchange to Ujjain will be approximately 150.85 km. l. The traffic forecast for 2025 is 15,128 PCUs, with only 31.33% comprising freight traffic. Of this, tollable traffic is 9,885 PCUs (6,451 AADT). A detailed BOT viability analysis under an EIRR scenario of 14% for the en(cid:415)re corridor was conducted, and the results indicate that the project is financially unviable under BOT. Therefore, HAM has been chosen for the project implementa(cid:415)on. m. The proposed 71 bus shelters include 36 shelters on each side of the corridor. It is important to note that these are bus shelters, not bus bays, and are designed to provide covered wai(cid:415)ng areas for commuters. Recommenda(cid:415)ons 14. A(cid:332)er detailed delibera(cid:415)ons, the PPPAC unanimously recommended the proposal for “Construc(cid:415)on of 4-Lanning of Badnawar-Petlawad-Thandla-Timarwani sec(cid:415)on of (NH- 752D) “Package-1” from Badnawar Bypass Ch. 70+400 to Village Temaria Ch. 114+400 and “Package-2” from Village Temaria Ch. 114+400 to Timarwani Interchange of DelhiMumbai expressway (NE-4) Ch. 150+850 in the state of Madhya Pradesh on Hybrid Annuity Mode under NH(O) scheme” subject to following recommenda(cid:415)ons, for considera(cid:415)on of the Competent Authority for giving Administra(cid:415)ve Approval. a. The appraised Total Capital Cost of the Badnawar-Petlawad-Thandla-Timarwani sec(cid:415)on is Rs. 3843.05 crore (Package-I: Rs. 1932.58 crore & Package-II: Rs. 1910.47 crore) with a total es(cid:415)mated project cost (excluding GST) of Rs. 1665.33 crore (Package-I: Rs. 823.73 crore & Package-II: Rs. 841.60 crore). b. The project should be taken up on HAM under the NH(O) scheme. c. The PPPAC assess that since the length of the project is 80.45 km, it can be taken up as a single package for smooth execu(cid:415)on of the project. d. The 12 major junc(cid:415)ons and 59 minor junc(cid:415)ons should be reviewed and op(cid:415)mized to enhance traffic efficiency, improve safety, and minimize conflict points. e. The concession period of the project is 17 years including 2 years construc(cid:415)on period. f. Land acquisi(cid:415)on and necessary clearances to be obtained in a (cid:415)me bound manner before the bid due date so as to avoid any delay in the project. g. MoRTH/NHAI shall ensure that the project is completed before the Simhasth Kumbh Mela in April, 2028. 15. Revalida(cid:415)on of its recommenda(cid:415)on by the PPPAC is not required for following post recommenda(cid:415)on changes in the project costs/bid documents: - a. Any change in the date/(cid:415)me period for any (cid:415)me-bound ac(cid:415)ons like appointed date, financial close, construc(cid:415)on period etc. b. Non-substan(cid:415)al change in risk-alloca(cid:415)on. c. Any other changes/modifica(cid:415)on in the project proposal with the overall objec(cid:415)ve of making project successful. d. Further, MoRTH/NHAI may decide whether the changes proposed post recommenda(cid:415)ons of the project proposal by the PPPAC fall within the threshold criteria as stated above. All such changes falling within the threshold criteria shall be appraised at the level of Secretary (RTH)/BoD of NHAI as the case may be, without any further need of revalida(cid:415)on by the PPPAC and shall proceed with the approval process accordingly. ***Annexure-I List of the par(cid:415)cipants of the 138th mee(cid:415)ng of the PPPAC a. Department of Economic Affairs, Ministry of Finance  Ms. Anuradha Thakur, Secretary (EA)  Dr. Alok Tiwari, JS (IFS)  Ms. Ms. Arya Balan Kumari, Joint Director (PIU)  Shri Rajender Singh, SO (PIU)  Shri Manjeet Yadav, ASO (PIU)  Shri Deepak Meena, ASO (PIU) b. Department of Expenditure  Shri Ranganath Audam, DD, DoE c. NITI Aayog  Shri. Partha Reddy, Programme Director d. Department of Legal Affairs  Shri Jagat Prakash, Assistant Legal Adviser e. Ministry of Road Transport and Highways  Shri V Umashankar, Secretary (RTH)  Shri Puneet Agarwal- AS&FA  Shri Manoj Kumar, CE f. Na(cid:415)onal Highway Authority of India (NHAI)  Anil Chaudhary, Member (P)  Navin Kumar, CGM (T)  Rahul Singh, GM (T)  Ashish Saini, Dy. Manager (T) ***