UP to Pay Rs.180 Cr bonus for completing Purvanchal Expressway before time

The 'dream project' of the Yogi Adityanath-led UP government, the 341 km-long Purvanchal Expressway was completed and inaugurated before the expected date of its completion. And to applaud this achievement, the Uttar Pradesh government has decided to pay Rs 180 crore as a bonus to contractors.

The much-awaited Purvanchal expressway was inaugurated by Prime Minister Narendra Modi on November 16, 2021, and it has been an important showpiece project for the government ahead of the assembly elections.Also Read - PM Modi Inaugurates Purvanchal Expressway, Witnesses Grand Airshow by Indian Air Force | Key Points

The project from Lucknow to Ghazipur, connecting Awadh to Purvanchal, was reportedly completed by the contractors 150 days early from the scheduled completion date. As per a News18 report, a board meeting of the UP Expressways Industrial Development Authority (UPEIDA) was held on February 16 and there it was decided that the two main contractors of the project would be given a 'bonus for early completion'.

The report stated that the 'bonus for early completion' to seek Rs 180.15 crore from the government was mentioned in their contract clause. The contract had a clause that contractors would be paid a bonus equivalent to 0.04% of the contract price for each day of early completion from the scheduled completion date, subject to a maximum of 6% of the contract price. "If the bonus is paid as demanded by the contractors, it would be within the ambit of the scheme approved by government," the board meeting discussed, adding that the board has approved this proposal.

The Yogi government has also claimed to have saved over Rs 1,200 crore on this project. Constructed at an estimated cost of about Rs 22500 crore, the Purvanchal expressway is a boost to UP tourism at places of historical significance. The expressway has also reduced the travel time between Lucknow to Ghazipur to 3.5 hours from 6 hours.