The Coimbatore Bypass Road Project

            

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Themes: EVA Financial concepts
Period : 1997-2001
Organization : L&T
Pub Date : 2002
Countries : India
Industry : Construction - Building Materials & Equipment, Financial Services

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Case Code : FINC010
Case Length : 05 Pages
Price: Rs. 200;



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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. L&T also set up trauma care with ambulance facility at the bypass.

Table I
Toll Charges for Using the Coimbatore Bypass Road

Type of Vehicle

 Toll Charged (Rs.)

Car, jeep & van

 19

Light Commercial Vehicles

 28

Heavy commercial vehicles

 56

Multi-axle vehicles

 84

Source: ICMR

The Indian Railways asked L&T to build a rail overbridge instead of a crossing for the bypass8. However, L&T successfully argued that it was not part of the original project. In order to recover the additional costs, an alternative funding method had to be selected to keep the fixed costs to be recovered from the project at low. Hence, with the consent of the state government, L&T decided to toll the old Athupalam Bridge, which did not come within the route of the bypass (Refer Table II).

Table II
Toll Charges for Using the Old Athupalam Bridge

Type of Vehicle

 Toll Charged (Rs.)

Car, jeep & van

 5

Light Commercial Vehicles

 15

Heavy commercial vehicles

 15

Multi-axle vehicles

 2

Source: ICMR

L&T also intended to provide necessary amenities for travelers such as petrol pumps, parking facilities, service stations, restaurants, drinking water facility, public telephone booths etc. The development of the real estate was to be taken up soon. Toll plazas of international standards were another attraction.

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8] As a policy decision, Indian Railways had upgraded the construction of railway crossings to rail overbridge.