The Union government, upset by several jammed highway projects, plans to re-negotiate contracts worth Rs 99,000 crore with some of the private developers to give them payment concessions, instead of imposing penalties. The government’s grand rescue plan, billed as a one-time measure, is in the final stages of approval and involves 23 concessionaires (the private parties) and a total project cost of Rs 34,000 crore ($5.2 billion).
Union Finance Minister P Chidambaram and Road Transport and Highways Minister Oscar Fernandes have okayed a moratorium of 6-10 years on the premia due from them. Law Minister Kapil Sibal has been asked to reconfirm if this plan is legally and constitutionally tenable.
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