Road developers eye max relief from govt

September 27, 2013

Dipak Kumar Dash, TNN |

NEW DELHI: Private highway developers are trying to extract maximum relief from government, citing the continuing economic gloom that has impacted their projects. Developers want government to allow rescheduling of annual premium payment for all the 39 projects awarded since April 1, 2010, including projects which have taken off. Premium is annual upfront amount that developers pay to NHAI.NHAI has forwarded the fresh proposal of developers to the highways ministry at a time when Cabinet is likely to consider the premium rescheduling of 23 “stressed” projects where work has not yet started. A top ministry official said they have returned the proposal to NHAI and have asked it to put it before the authority’s board, which has representatives from road, Planning Commission and the finance ministry.

After receiving a proposal from the National Highway Builders Federation (NHBF) and IRB Infra that the proposed premium rescheduling scheme should be extended to all premium projects, NHAI has asked the ministry to put a supplementary note for Cabinet’s consideration. It has said half of estimated toll revenues have been hit due to the economic slowdown.

Source - http://timesofindia.indiatimes.com