For delayed road projects, a financial revival package from the government has been sought by the National Highways Authority of India (NHAI). Proposing the financial solution, NHAI has sought urgent intervention of the Prime Minister’s Office (PMO) on a host of matters related to highway projects.
NHAI has proposed certain solutions to jumpstart the highway projects which are basically either stalled or have not found any bidders in the past one year. So this multi-prong strategy basically consists of substitution of concessioners of delayed projects by concessioners in neighbouring areas.
This is because those concessioners already have the infrastructure to takeover projects that are delayed. Secondly and more interestingly they have also proposed that there should be a financial package that should be offered to concessioners who want to come out because of delays like environmental clearance or other such issues. The highway regulator has told the PMO that the legal route should be avoided as much as possible.
If at all the highway concessioner wants to terminate the project then there should be a dialogue with the highway developer instead of taking the legal route. However, for all of this to workout the NHAI has said that their Model Concession Agreement for highways has to be modified.
There has to be drastic modification because it does not allow participation of for example, private equity in highway projects. There are lot of restrictions and that has to be reviewed. That has to be taken up in priority and only then big solution will be worked out.
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