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In a major relief to the developers of the Panipat Jalandhar expressway, the Supreme Court has allowed the shifting of a toll plaza paving way for construction to revive on the 291 kilometre Panipat -Jalandhar expressway.
Soma Isolux, the developers of the expressway had challenged a decision taken by the Punjab and Haryana High court asking NHAI to take over the project National Highways authority. The developer had expressed difficulties in completing the remaining 40 km stretch of the highway without shifting of the toll plazas and pointed out that it was necessary since vehicles were bypassing the toll gate and the toll collected was less than expected. The Supreme Court in its ruling said that the developer has already completed 71% of the work.
"The toll plaza is allowed to be shifted from km 146 to any point between kms 110 and kms 117 with concurrence of the National Highways Authority of India", Soma said in a statement. Soma Isolux won the contract to convert the four-lane highway to six lanes.
Last year, the National Highways Authority of India has shot off a letter to State bank of India questioning the bank's reasons for providing excess fund to a concessionaire for constructing the 291 kilometer Panipat-Jalandhar expressway. NHAI, in its letter had asked the bank to explain the reason for giving funds amounting to more than Rs 3300 crore to project concessionaires Soma-Isolux as the authority felt that the amount is almost double of what was required in the first place. SBI is the lead banker among a consortium of bankers who lend to the project and the project cost is estimated at Rs 4500 crore.
NHAI had awarded the project to Soma after the company offered to pay 20% of the toll collected to the authority and the share was to rise 1% every year. The Punjab and Haryana high court had fined the concessionaire with Rs 60 crore in its order last year. Soma, is currentlyin the midst of a debt restructuring program and has asked the lenders for approximately 2 years moratorium in the term loans.
