Finance Minister gives conditional nod on premium payments of road projects

By Accommodation Times News Service

The finance ministry has approved to the rescheduling of payments to be made to the National Highways Authority of India (NHAI) by the development of these projects. This move could help at least two dozen road sections. The changes in the plan will benefits the projects worth Rs 34,000crore which is subject to the approval from the law ministry. The developers will also charged penalty coming for rescheduling of premium payments and want that road transport ministry to come up with a formula for determining the penalty amount. In 2011-12, NHAI has projected almost 27 projects on a premium.

The projects which are awarded on premium sections where the developers build the road and makes an annual payment to NHAI during the concession period. The finance minster has also made it clear that reschedule will be allowed only once during the concession period. The finance ministry said, if the project gets into stress subsequent to renegotiation, the sponsoring authority should mandatorily invoke the termination clause and find a new operator for the project. It added that in case of the commercial operation date has not been achieved the concessionaire would be obliged to remain in the project at least till the COD.

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