As road sector gears up to resume work, uncertainty looms over compensation

As the road sector gears up to resume work on some of the projects under construction, uncertainty looms on what costs are covered under the political force majeure. Industry executives point out demonetisation precedence for tolling of operational projects but those being constructed under the hybrid annuity model lack past reference.

As work came to a halt, mobilised equipment remain stranded with idling costs rising. There is no clear answer on who would bear the cost. “For projects under construction, we do not know how they are going to deal with it,” said Virendra Mahiskar, chairman and managing director of IRB