Project Overview
The Tada–Nellore section of NH16 forms a continuous movement corridor along the Chennai–Kolkata route, supporting inter-state freight movement and regional mobility across southern Andhra Pradesh and northern Tamil Nadu. The four-lane stretch carries a steady mix of long-haul and local traffic, making it an important operational asset within the national highway network.
The assignment involved a technical due diligence review in the context of a potential ownership transfer, with a focus on understanding current conditions, operational risks, and long-term obligations. The aim was to provide a clear view of how the asset would behave across its remaining lifecycle and under evolving traffic and contractual dynamics.
Scope of Work
Technical Due Diligence
Corridor Length & Configuration
110.8 km & 4 lane
Concessionaire
Swarna Tollway Private Limited
Client
A P Moller Capital P/S
Scope of Work
Technical Due Diligence
Corridor Length & Configuration
110.8 km & 4 lane
Concessionaire
Swarna Tollway Private Limited
Client
A P Moller Capital P/S
Challenges
A key complexity arose from ongoing claims, pending issues, and settlements associated with past operations. The corridor also included new works—executed by an EPC contractor with its own defect-liability responsibilities, creating multiple maintenance boundaries during the transition period. These overlapping obligations influenced both cost forecasting and risk assessment for a prospective buyer.
In addition, variations in the timing of past periodic maintenance introduced uncertainty while estimating the next major intervention cycle, requiring careful interpretation of condition data.
Solutions
Ongoing claims and EPC-related responsibilities were mapped to understand their impact on maintenance obligations and future cost exposure. Pavement and structural conditions were reviewed through field assessments and available records to establish a realistic baseline for ageing and remaining service life. Traffic patterns, safety performance, and corridor functionality were analysed to evaluate operational reliability.
Lifecycle projections were developed with consideration of staggered maintenance responsibilities and pending works, enabling a clear view of long-term requirements for an incoming operator.
Impact
The review provided clarity on how the asset would perform once current construction and contractual commitments reached completion. It helped define expected upkeep needs, cost ranges, and operational behaviour under continued freight movement.
The analysis supported transparent valuation by outlining risks linked to pending claims, phased responsibilities, and maintenance timing.
