The Anil Ambani-owned Reliance Energy Ltd (REL) on Thursday signed Concession Agreements with the National Highways Authority of India (NHAI) for building three national highways, totalling 400 kms on NH-7, in Tamil Nadu on Build-Operate-Transfer basis.
REL clinched the deal, worth Rs 2,320 crores, through competitive bidding for the  four-lane national highway projects under the National Highways Development Programme (NHDP) Phase IIIA in the southern state.
With these projects, Reliance ADA group has not only emerged as the largest BOT concessionaire but also strengthened its position as a serious player in road infrastructure business in the country.  
For executing the projects, REL has promoted three special purpose vehicles (SPVs) – SU Tollways Pvt Limited, TU Tollways Pvt Limited and TK Tollways Pvt Limited.
The concession agreements for 25-year and 30-year period projects were signed by Mr Sudhir R Hoshing, Vice President, Road projects, Reliance Energy, and Mr Rajesh Poonia, GM, NHAI.
Investment
The projects awarded include a high-traffic density corridor from Salem to Ulundurpet, Trichy to Dindigul and Trichy to Karur. The latter two projects are contiguous to the already awarded REL projects — Dindigul to Samyanallore and Namakkal to Karur — in Tamil Nadu.
The projects would entail an investment worth Rs 2,320 crores, including a grant component of Rs 758 crores on a build, operate and transfer (BOT) basis under the direct tolling method scheduled for completion by 2010. The new additions would take the REL road portfolio to five projects having a total length of 400 kms worth Rs 3,100 crores in just two years.
Once operational, the new scientifically designed highways will ease traffic congestion, drastically, cut travel time, ensure a safer and comfortable movement of traffic and incur less fuel costs.
REL envisages improving more than 400 km of arterial routes of National Highways network to international standards.
The Salem-Ulenderpaet (NH68) project, having a length of 136 km, is to be constructed at an expenditure of Rs 941 crore. It is the major corridor that connects Coimbatore/Kerala to Chennai and eastern parts of Tamil Nadu. This corridor also connects NH7 from Bangalore side to Pondicherry and other eastern parts of TN.