As the government readies to defer premium payments by the highway developers for under construction projects delayed due to regulatory hurdles, the concessionaires may also be liable for a penalty if the lag is found to be on their part.
“Concessionaires will be penalised if there is no delay on the part of the central government even as they are allowed to defer their premium payments,” a Road Ministry official told PTI.
The Ministry had sent a proposal to the Cabinet seeking its nod for rescheduling of premiums of about Rs one lakh crore in case of 23 awarded toll projects.
According to sources, the government has allowed road construction companies to delay the payment of premium if the project is found to be stranded as a result of receiving the requisite clearances late from the respective ministries. The projects are likely to be taken up on a case by case basis.
The matter has been referred to a committee headed by PMEAC Chairman C Rangarajan which will work out the details on rescheduling of premium for the road projects.
Premium is a payment made by the developer to NHAI (National Highways Authority of India) in build, operate and transfer (BOT) projects. It is offered by companies during the bidding stage and is based on projected returns from tolls.
Last week, government cleared Ministry of Road Transport and Highways’ proposal seeking rescheduling of premium. This decision comes in the backdrop of some highway developers exiting projects citing regulatory bottlenecks.
Earlier this year, GMR Infrastructure walked out of the Kishangarh-Udaipur-Ahmedabad project 16 months after securing the order.
The project is estimated to have required an investment of Rs 5,387 crore. The Bangalore-based group had won the project in western India through international competitive bidding at Rs 636 crore annual premium for 26 years.
According to sources, the company terminated the contract on account of difficulties in taking up the project due to regulatory hurdles, including delays in environment clearance and land acquisition.