Themes: EVA Financial concepts
Period : 1997-2001
Organization : L&T
Pub Date : 2002
Countries : India
Industry : Construction - Building Materials & Equipment, Financial Services
Revenue GenerationL&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.
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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.
8] As a policy decision, Indian Railways had upgraded the construction of railway crossings to rail overbridge.