CHENNAI: The National Highways Authority of India (NHAI) has decided to terminate the contract for the construction of the 26-km, four-lane stretch of the Bengaluru-Chennai Expressway between Arakkonam and Kancheepuram due to prolonged delay in execution of the project by the concessionaire.
Official sources told TNIE that a notice of intent to terminate the contract has been issued to the concessionaire, as work on the stretch has remained suspended since May this year. Only about 54% of the work of the total 26-km stretch has been completed so far. The section was estimated to cost Rs 1,525 crore, of which Rs 767 crore has already been spent.
Other sections of the expressway have made significant progress. The Gudipala-Walajah section has achieved 92% completion, while the Walajahpet-Arakkonam stretch is around 93% complete. Both sections are targeted for completion by January.
The Kancheepuram-Sriperumbudur section is approximately 83% complete and is scheduled to be finished by April 2026.
A few months ago, the contractor had approached the Madras High Court citing an increase in project costs due to the rising price of fly ash.
Delay of three more months will push deadline of road project to August 2026
However, sources said the concession agreement between NHAI and the contractor does not include any provisions regarding the procurement or pricing of fly ash. “It is the contractor’s responsibility to source fly ash from the market and use it for the ongoing major road overbridge works in the Arakkonam-Kancheepuram section,” an official said.
The Kancheepuram Project Implementation Unit of NHAI, which oversees the project, issued the notice of intent to terminate the contract on November 2. “After the notice was issued, detailed discussions were held with the contractor, who agreed to resume work next month. If the contractor fails to do so, the contract will be terminated,” the official added.
The 260-km Chennai-Bengaluru Expressway was originally slated for completion by December this year, but the deadline was extended to June next year due to delays in shifting of high-tension power lines and towers. The project has faced further delays by another three months thereby pushing the deadline tentatively to August next year. Once operational, the expressway is expected to reduce travel time between Chennai and Bengaluru to just three hours. The expressway starts at Hoskote in Karnataka and ends at Sriperumbudur in Tamil Nadu.
The 71-km stretch from Hoskote to Bethamangala in Karnataka was completed and opened to traffic in December last year.
The remaining sections include an 85-km stretch from Bethamangala to Gudipala in Andhra Pradesh and a 106-km stretch from Gudipala to Sriperumbudur, of which 96 km lie in Tamil Nadu and are currently under construction. The Tamil Nadu portion is being executed at a cost of Rs 7,720 crore, with Rs 4,595 crore spent so far.