Government has sought legal advice on the proposal to give concession to GMR Infrastructure for implementing the Kishangarh-Udaipur-Ahmedabad project.
The government seeks legal advice because the issue has wider implications for road sector and needs careful resolution in order to protect the interest of the government.
This was stated by the Minister of State in the Ministry of Road Transport and Highways Sarvey Sathyanarayana in Lok Sabha recently.
The concessionaire, GMR Infrastructure, had served a notice on December 21, 2012 upon the National Highways Authority of India (NHAI) of its intention to terminate the Concession Agreement.
The concessionaire had also filed a petition simultaneously before the HonÂ’ble High Court of Delhi and obtained an ex-parte order dated December 28, 2012 directing the parties to maintain status-quo till the next date of hearing so that NHAI does not take any action for forfeiture of performance bank guarantee.
NHAI contested the Notice of the Concessionaire as illegal or untenable under Concession Agreement and advised the Concessionaire in its reply dated January 01, 2013 to withdraw the notice dated December 21, 2012.
Now, the Concessionaire has submitted a proposal offering to execute the project in case NHAI is agreeable to reschedule the premium, without affecting the net present value (NPV) of the total premium due to NHAI, over the concession period and also requested for one time compensation for increase in Project Cost attributable to delay in fulfilling Conditions Precedent by NHAI.
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