IL&FS Transportation Wins Zojila Tunnel Project In Re-Bidding

IL&FS Transportation Networks Ltd. emerged as the lowest bidder for the Rs 4,899 crore Zojila pass tunnel project in Jammu and Kashmir.

The project aims at providing all-weather connectivity between Kashmir valley and Ladakh, which remains cut-off from the rest of the world during winters due to heavy snowfall.

Zojila pass is situated at an altitude of 11,578 feet on Srinagar-Kargil-Leh National Highway which remains closed during winters (December to April) due to heavy snowfall and avalanches cutting off Leh-Ladakh region from Kashmir.

The company had submitted the bid to the National Highways & Infrastructure Development Corporation Limited (NHIDCL) for construction, operation and maintenance of 2-lane bi-directional Zojila Tunnel with parallel escape tunnel on Srinagar-Leh section on engineering, procurement and construction mode, said IL&FS Transportation to BSE in a filing.

Road Transport and Highways Minister Nitin Gadkari had earlier this year said that the government will re-issue tenders for the strategic Zojila pass tunnel by April and work will commence by August.

“We understand the plight of people in Leh and Ladakh region who face severe crisis during winters when they are cut off from the rest of India for six months. We are committed to undertaking the project and will issue tenders by April. This year, around August 15, we will give appointment date for the important project and start work,” Gadkari had said.

On March 1, 2016, the Road Transport and Highways Ministry had ordered "re-bidding" for the project, which had been awarded to IRB Infrastructure Ltd. The decision was taken at a high-level meeting, chaired by Gadkari, after Congress leader Digvijay Singh alleged that guidelines were violated while awarding the contract.

The Road Transport and Highways Ministry, however, had denied the charges.

Shares of IL&FS Transportation Networks surged as much as 9.5 percent to Rs 98, its biggest single-day gain since January.