NHAI may allow premium rejig for some stressed projects
May 23 2014 , New Delhi
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.