Posers raised over extra cost for ring road project
Source: Chronicle News Service

Imphal, May 23 2025: Questions have surfaced over whether the state government shall bear additional cost for the Imphal Ring Road project, as two of the selected executing agencies have been awarded contracts at rates higher than the estimated costs.

However, officials from the Public Works Department (PWD) have clarified that the loan amount sanctioned by the Asian Development Bank (ADB) will be sufficient to complete the civil works, and there is no provision for additional financial burden on the state exchequer apart from land acquisition and clearances.

The Imphal Ring Road project, which aims to construct a 51.23-kilometre urban road network around Greater Imphal to reduce traffic congestion and improve mobility, was conceptualised in 2013-14 with ADB assistance.

Though initially shelved in 2015 due to land disputes along the Langol Tarung alignment, the project was revived in 2020 with a sanctioned loan of Rs 915 crore.

The estimate was later revised in 2023 to Rs 1,374.75 crore.

The total project cost now stands at Rs 1,766 crore.

The project has been divided into three contract packages to expedite completion.

Package 1 covers 19.225 k, and package 2 includes 19.87 km, while package 3 covers 12.135 km.

International open competitive bidding was floated on March 20, 2023.AKELIK-KSIPL (JV) emerged as the lowest bidder (L1) for Package 1, quoting Rs 340.20 crore, 10.31 per cent lower than the estimated Rs 379.32 crore.

The same joint venture also submitted the lowest bid for Package 2.However, on evaluation of the joint venture's financial capacity, it was found that AKELIK's available financial resource was Rs 114.92 million, lower than the Rs 200 million required as per sub-clause 2.3.3 of the evaluation criteria.

As such, AKELIK-KSIPL was considered eligible for only one package.

Package 2 was ultimately awarded to VENSAR-GKC Joint Venture at Rs 497.11 crore, 7.09 per cent higher than the estimate of Rs 464.21 crore.

The same joint venture was also awarded Package 3 for Rs 344.01 crore, 15.08 per cent higher than the estimated Rs 298.94 crore.

According to the evaluation committee, VENSAR-GKC fulfilled the aggregated financial requirements necessary for handling both packages.

These developments sparked concern over whether the state would be forced to shoulder the excess expenditure.

But a senior PWD engineer told The People's Chronicle that the financial support from ADB is sufficient for executing the project.

The engineer stated that while agencies may have quoted higher bids, the government is not liable to cover the excess beyond the sanctioned ADB loan.

The state's role is limited to expenses on land acquisition, forest and environmental clearances, while 18 per cent GST will be deducted from the executing agencies' bills, effectively reducing the financial load.

The Imphal Ring Road is set to bring multiple benefits to the city, including improved road safety, reduced accidents and fatalities, rapid access to key city establishments, and reduced carbon emissions by promoting public transport.

The project also includes the introduction of 20 low-floor mid-size e-buses and 52 e-rickshaws under a public-private partnership model.

Key features include a mix of four-lane (9.675 km) and two-lane (41.555 km) roads, with 17.77 km of new greenfield construction.

Footpaths with lined drains, solar lighting, signal junctions, semi-high mast lighting, and noise barriers for sensitive areas are also planned.

A one-kilometre model road along Porompat Road No 1 will feature cycling and jogging tracks and road furniture.

The project is expected to create 18 lakh man-days of direct employment and 13.5 lakh man-days of indirect employment.

The works, awarded recently, are being supervised by M/s URS Scott Wilson India Pvt Ltd in joint venture with Consulting Engineers Group Ltd, India.

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