NHAI may allow premium rejig for some stressed projects

Tags: NHAI, News
National Highways Authority of India in its board meeting today may consider allowing rescheduling of premium payments by some highway developers.

According to sources, about 7-8 requests for premium restructuring are coming for consideration by the NHAI Board today.

Premium is a payment made by the developer to NHAI in build, operate and transfer (BOT) projects. The premium, which is offered by companies during the bidding stage, is based on projected returns from tolls.

The government had last year approved the proposal seeking postponement of premium payments by highway developers.

The Ministry of Road Transport and Highways had sent a proposal for the consideration of the Cabinet, seeking nod for rescheduling of premiums of 23 stressed projects awarded on BOT, valuing around Rs 1 lakh crore. These projects had been facing delays on account of high premium.

The decision of the Cabinet was taken after taking into consideration the recommendations of Prime Minister's Economic Advisory Council Chairman C Rangarajan headed panel.

Last year, GMR Infrastructure exited the Kishangarh- Udaipur-Ahmedabad project 16 months after securing the order.

It is believed that the company terminated the contract on account of difficulties in taking up the project due to regulatory hurdles, including delays in environment clearance and land acquisition.

EDITORIAL OF THE DAY

  • We must understand the need for P-notes to settle the debate

    The never-ending controversy surrounding participatory notes, aka P-notes, is back in focus following the latest revelation by the Supreme Court-appoi

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Arun Kumar Jain

Managing decisions & bias in 3EE

Leadership is about facing and resolving dilemmas, taking tough calls, ...

Kuruvilla Pandikattu SJ

To see the best in the other

When two people initially develop a loving relationship, the bond ...

Dharmendra Khandal

Creepy, you say? That’s merely ophidiphobia

Snakes are the earliest predators in the life of the ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture