National Highways Authority of India (NHAI), IndiaÂ’s nodal road development agency, has warned that almost Rs 98,000 crore of premium revenue from highway builders is in jeopardy after its proposal to reschedule the premium payments due from road developers was turned down by the Union Law Ministry.
Pushed to a corner after the Law Ministry’s ‘official level’ rejection, the NHAI has asked for a rethink at the highest level.
The Law Ministry decision jeopardises nearly 25 highway projects awarded 2 to 3 years ago and has the potential of putting to risk nearly Rs 98,000 crore of premium that the government would have received, NHAI has pointed out in a letter.
The letter added that further, if these projects are called off and the developers debarred for failing to meet bid conditions, the entire public-private partnership model in the road sector could be derailed. Faced with mounting delays in PPP projects, the Highway Ministry has already taken a de facto decision to shift away from PPP model, by deciding to follow government-funded model for two-thirds of road development contracts to be issued this financial year.
Leave a Reply
You must be logged in to post a comment.