Reviving the stalled Kundli-Manesar-Palwal (KMP) Expressway project, Haryana government has now invited tenders to convert this 135 km stretch into a six-lane access controlled corridor in the next two years. The project that is crucial to reduce congestion on Delhi roads and vehicular pollution in the national capital would still need Rs 2,260 crore investment, according to the bid document.

The expressway work, which has been stalled for over two years, will be executed through build operate and transfer (BOT-toll) model and the state government won't provide any financial assistance to the successful bidder for financial viability of the project. As per the official document, the private party that will quote minimum years of tolling would get the project. Earlier, the state government had bid out the expressway project for fixed years of tolling, which is also called the concession period.

"Since major work and earthwork has been carried out in certain portions of this corridor connecting Kundli, Manesar and Palwal in the past 6-7 years, we have asked prospective bidders to assess the ground reality before they put their bids. We are keen to develop this stretch as a six-lane expressway rather than the earlier plan of a four-lane road because the other half of ring expressway around Delhi (KGP expressway) will also have six lanes," said a Haryana government official.

The expressway work was originally awarded to KMP Expressway Ltd in November 2005 and an agreement was signed to develop this stretch as a four-lane expressway with provision of the contract extending to 23 years and nine months. It was scheduled to be completed by July 2009. But the deadline was missed several times. All negotiations between the developer and state government failed to revive the project.

Finally, the Supreme Court in January directed Haryana government to terminate the contract and invite fresh bids and to award the project to a new concessionaire within two months.

"The new developer won't face any problem because of the old financial disputes between us and the former developer. The Supreme Court order is very clear," said a state government source.

Meanwhile, TOI has learnt that the state government will also float parallel tenders to complete the project through other modes.

Sources said since major work is done on the Manesar-Palwal corridor, which is of four lanes, Haryana government can spend less from its kitty to complete this stretch and start collecting toll. "The rest of the expressway - Kundli to Palwal - can be bid out on BOT-annuity basis," said an official.

Under the BOT-annuity model, the state would pay back the entire investment of the private player in installations.