Union Minister for Road Transport and Highways CP Joshi has said that to sort out the challenges, including financial stress, enhanced construction risk and contract management issues, the Finance Minister P Chidambaram has proposed to set up a road regulatory authority.
The new body will be mandated to settle issues between concessionaire and the NHAI apart from others. The broad picture will only be clear once the proposal goes to the cabinet. Changes in the terms of concessions would be looked after by the regulator, said Joshi.
The key functions of the proposed regulator are likely to be tariff setting, regulation of service quality, assessment of concessionaire claims, collection and dissemination of sector information, service-level benchmarks and monitoring compliance of concession agreements, among others.
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