By Accommodation Times News Service
The highway developers have cautioned the government to grant deferral the premium to only few select highway projects can raise litigation. A letter has been written to the government by National Highway Builders Federation said, any policy amendments which needs to be extended to all premium projects awarded irrespective of these projects have been issued appointed date and started construction or not allow the concessionaire who are opting for scheme.
As per its current plan, the government is looking to allow premium payments to be restructured for only 23 projects with premium amounting to Rs 1lakhcrore.
“Any litigation on this issue at this juncture may derail the implementation of this scheme which in turn affects the revival of this sector and development of road sector in our country,” the industry body said in a letter. They have argued since payment of premium during the construction period causes financial stress for developers in most projects, all the premium projects awarded should be allowed to reschedule the premium keeping the net present value (NPV) same and at a discount factor of 10%. The current proposal suggests a discount factor of 12% which many industry members feel is too high and defeats the purpose of reducing financial stress.