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Govt to review NHAI-GMR proposal over premium payment

Govt to review NHAI-GMR proposal over premium payment
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The National Highways Authority of India’s (NHAI’s) recommendation with regard to road developers’ premium payment is likely to be reviewed by the Union Road Ministry. The Ministry will review NHAI’s recommendation to defer payment of premium by companies like GMR who has agreed to certain conditions by the Authority to ensure they do not leave the project after the government approves the proposal.

The Ministry will now weigh the pros and cons of allowing back-loading of premium for all companies facing financial issues and place it before the Road Minister CP Joshi after a legal vetting. In a letter to the ministry, NHAI has pushed for allowing companies like GMR to defer premium payment.

GMR will now have to pay a premium of Rs 58,921 crore instead of the original Rs 32,000 crore. Road Ministry officials, however, said a final stance will be taken only by the Ministry and a cabinet move will be moved if it has the Minister’s approval.

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