The Union Highway Ministry, while favouring a proposal to restructure premium paid by developers to the National Highways Authority of India (NHAI), has put in a few caveats. In the tweaked proposal, the Ministry has suggested that the premium paid by a developer during the initial years cannot be lower than the toll revenue collected from that highway stretch. The developer cannot use toll revenues to widen the highway, said a source.
Premium is the amount offered by a developer to NHAI for the right to invest in widening a highway and collecting tolls from users of that stretch over a 20-30 year period. The annual premium offered was the bidding parameter for these developers. Now, with changed economic conditions, many developers want to postpone the premium payment, which is termed as rescheduling of premium.
The developers want to pay a lower amount in the initial years and a higher amount thereafter, while keeping the net present value of the premium constant.
Leave a Reply
You must be logged in to post a comment.