Shivalaya Construction Bags Contract for Rajgir Tourist Highway

Rajgir Tourist Highway
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Shivalaya Construction Pvt. Ltd. has secured the contract to build a new Greenfield four-lane highway from Salepur to Rajgir via NH-82, marking a major step forward for Bihar’s infrastructure and tourism development. Spanning 27.180 km, the proposed road will traverse through Noorsarai, Ahiyapur, and Silao in Nalanda district. This highway will significantly improve connectivity to Rajgir, a key destination in the Buddhist Circuit and an important center for religious and historical tourism in the state.

The financial bids for the project were opened on July 15, 2025, following a competitive tendering process that attracted proposals from 14 national and international infrastructure companies. Shivalaya Construction emerged as the lowest bidder (L1) with a quote of ₹578.11 crore—17% below the estimated cost of ₹696.52 crore.

This highway project is being developed by the Road Construction Department of Bihar under the Engineering, Procurement and Construction (EPC) mode. The administrative approval for the project was issued last year with a sanctioned amount of ₹862.63 crore, as per the state government’s communication dated August 22, 2023.

Initially, the tender had been floated earlier but had to be cancelled due to receiving only one valid bid, making it a single-tender scenario. As per procurement norms, the project was re-tendered to ensure a more competitive and transparent bidding process. This time, fourteen bidders, including infrastructure giants like PNC Infratech, H.G. Infra, Dilip Buildcon, GHV India, and Ceigall India Limited, submitted responsive bids.

The bids revealed a tight contest. The second-lowest bid came from Ceigall India Ltd. at ₹621.29 crore, while PNC Infratech quoted ₹630 crore. Dilip Buildcon, on the other hand, submitted a bid of ₹758.57 crore, around 8.91% above the estimated cost. IRCON International submitted the highest bid at ₹819.10 crore, 17.60% above the estimate.

The contract duration is set at 30 months, and once completed, the new highway is expected to significantly improve travel time and safety for pilgrims, tourists, and residents alike. It will also enhance regional trade and economic activity by linking Rajgir more efficiently with other key locations in Bihar.

The highway forms a crucial part of the state’s broader effort to modernize its road network and promote tourism under the Buddhist Circuit development initiative. Rajgir, once the ancient capital of the Magadh empire, holds deep cultural and religious significance for Buddhists, Jains, and Hindus, making this infrastructure upgrade both strategically and culturally important.

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