Panel suggestions to bring relief to hway developers

The C Rangarajan Committee is expected to suggest reduction and deferment of premium to be paid by road developers to National Highways Authority of India (NHAI). Hence, with the panel measures, several highway developers are set to get major relief. Rangarajan committee is likely to recommend that for six-laning of highway projects, at least 25 per cent reduction in annual premium payment to NHAI during construction period and about 50 per cent during subsequent years. The committee has been entrusted with the task to come out with a formula to defer the premium payment towards later part of the concession period to make projects viable for developers. The developers don´t have to pay premium during the construction period in case of four-laning of projects. During operation and maintenance period, they have to pay minimum 50 per cent of the committed annual premium.