Union finance ministry opposed the idea of the roads ministry to provide blanket relief to road developers who are suffering from financial crisis.
Recently, the finance ministry received proposals from the roads ministry for restructuring the premium owed to the government by PPP contractors of road projects.
But it is understood that the finance ministry is open to looking at project-specific proposals for restructuring premium.
The proposal to restructure premium of road projects came after some developers exited their projects after securing the contract citing delay in statutory clearances.
Premium is the money that road developers agree to pay the National Highways Authority of India (NHAI) for building a highway and collecting toll from users.
NHAI signs a concession agreement with the winning bidder, usually the developer that offers the highest premium or asks for the lowest grant and satisfies the technical and financial considerations, after evaluation of bids. The typical agreement is for 20 years.
Meanwhile, the finance ministry suggested the road ministry to devise a method to calculate the restructured premium payment.
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