'Scrapping of DND contract to hit investment in UP'

The Uttar Pradesh government should not back out of contractual obligations on DND Flyway as it will affect foreign and domestic investment in the state, a company official said today.
Variosu political parties and residents' groups have been demanding making DND Flyway toll free. Noida Toll Bridge Company Ltd is the concessionaire of the project.
"The government needs to send an investor-friendly message in order to secure investment in future infrastructure projects in India by not reneging on their legal contract and obligations," Noida Toll Bridge Company whole time director Monisha Macedo said.
The official said that Noida Toll Bridge's investors have invested in the infrastructure project to earn returns on the basis of concession agreement.

"After executing the contract, for which the private party has delivered by way of building a world class facility at its own cost, on what basis is the government considering that the contract is not binding on all stakeholders?" she questioned.
On one hand, the state is seeking fresh investments, especially for infrastructure projects, yet it needs to develop confidence in already invested investors by honoring existing concessions, the official said.

She also said that the DND case was not comparable to the Gurgaon Express toll imbroglio as the latter was a public road that existed and the concessionaire was only upgrading the road facility.

There have been allegations that Noida Toll Bridge arbitrarily floated a subsidiary company and sold off government land to that subsidiary for huge profits.
"No land has been utilised for any purpose other than the Bridge and remains in possession of the company," she said.
On the issue of Noida authority not having access to the company accounts, she clarified, "the company's accounts are audited by a jointly appointed Auditor and strictly as per the provisions of the Concession Agreement."
Various political parties and residents' groups have organised protests to press for their demand to make DND Flyway toll free while alleging that the company continues to charge toll for usage despite having earned over and above the project cost.