The Coimbatore Bypass Road Project

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Case Details:

Case Code : FINC010
Case Length : 5 Pages
Period : 1997-2001
Pub. Date : 2002
Teaching Note : Available
Organization : L&T
Industry : Construction - Building Materials & Equipment, Financial Services
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Revenue Generation

L&T pointed out that the project helped vehicles save fuel and vehicle operating costs due to reduction of distance by 2.5 km and free flow traffic, besides time.

Other benefits to the bypass users included less pollution, pleasant drive, good wayside amenities and lastly, safety. L&T gave special emphasis to safety aspect of the road. Crash barriers were provided on the high embankment of the road, along with thermo plastic road markings.

Traffic signals were erected at the junctions of Neelambur (Tamilnadu), Madukkarai (Kerala), Trichy Road (Tamilnadu), and Pollachi Road (Kerala). Speed breakers were erected at suitable locations on the major district roads crossing the bypass to regulate the speed of vehicles. Retro reflective signboards were also provided to illuminate junctions for better visibility at nights...

Finance | Case Study in Management, Operations, Strategies, Finance, Case Studies


L&T faced problems with the tolling of the old Athupalam bridge, which did not come within the route of the bypass. This bridge was an already existing facility being used by the incoming traffic from Kerala to Tamilnadu.

Transport operators had initially refused to pay the tolls. The bulk users of the bridge including the state transport corporations of Tamilnadu and Kerala had refused to pay the tolls.

The Tamilnadu state government too backtracked and sought concessional tariff for state transport buses on the plea that the transport department was in the red. The Tamilnadu government was willing to pay only Rs.50 per bus for making more than three trips a day instead of the originally planned Rs.15 per bus per trip. L&T agreed to the subsidized toll rate on the condition that the state government compensated the revenue losses sustained by the company...

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