The Yamuna Expressway Concession Agreement: A Closer Look
The Yamuna Expressway, also known as the Taj Expressway, is a six-lane highway in Uttar Pradesh, India that connects the capital city of Delhi to the tourist destination of Agra, home of the famous Taj Mahal. The 165-kilometer (102-mile) expressway was built by the Yamuna Expressway Industrial Development Authority (YEIDA) and opened to the public in 2012.
The concession agreement for the Yamuna Expressway was signed between the YEIDA and the concessionaire, Jaypee Infratech Limited, in 2009. The concession period was set at 36 years, during which Jaypee Infratech was responsible for the construction, operation, and maintenance of the expressway.
Under the agreement, the concessionaire was required to pay an upfront premium of INR 408 crore (approximately $55 million) to the YEIDA. In addition, the concessionaire was to pay an annual concession fee of INR 15 crore (approximately $2 million) to the YEIDA, with an annual increase of 5% from the fourth year of the concession period.
The agreement also included provisions for toll collection and revenue sharing between the YEIDA and the concessionaire. The concessionaire was allowed to collect tolls from vehicles using the expressway, with the toll rates to be set by the YEIDA. The YEIDA was entitled to a percentage of the toll revenue, increasing from 8% in the first year to 12% in the fifth year, and staying at 12% for the remainder of the concession period.
The concession agreement for the Yamuna Expressway has faced criticism and controversy over the years. In 2017, the Allahabad High Court ordered the cancellation of the concession agreement due to irregularities in the bidding process. However, the decision was overturned by the Supreme Court in 2019, allowing the concessionaire to continue operating the expressway.
The Yamuna Expressway has brought significant economic and social benefits to the region, reducing travel time between Delhi and Agra and stimulating economic development along the corridor. However, the concession agreement has also highlighted the challenges and complexities of public-private partnerships in infrastructure development, particularly in emerging economies like India.
In conclusion, the Yamuna Expressway concession agreement is a complex and controversial document that has had a significant impact on the development of infrastructure in the region. As with any large-scale infrastructure project, it is important to balance the interests of various stakeholders and ensure that the benefits of the project are shared fairly and transparently. The Yamuna Expressway continues to be an important symbol of India`s progress and potential, and it is up to all involved to ensure that it remains a model of effective public-private collaboration.
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