In yet another policy decision to fast-track highway building, the government today authorised NHAI to pay compensation to road developers, in case of delays not attributable to them, a move that will significantly benefit 34 stuck projects.
The decision was taken in a meeting of Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi here today.
"The Cabinet has taken a very bold decision to allow the Ministry of Road Transport and Highways to go into the merits of each case and wherever the delays are not attributable to the developer, to extend the tolling period if that should be required and take such measures, which will once again revive these toll projects and get them to operation." Coal and Power Minister Piyush Goyal said briefing the media.
Thirty four projects will significantly benefit from this decision and infra sector will get a boost from the decision, while highways building will be fast-tracked, he added.
"The CCEA has given its approval for authorising National Highways Authority of India (NHAI) to allow extension of concession period for all current projects in BOT (Toll) mode that are languishing during the construction period due to causes not attributable to the concessionaire," an official statement said.
It said such permission would be subject to conditions that include the tenure of the Operations Period as envisaged originally in the concession agreement may remain unchanged. This will result in a corresponding increase in concession period.
"The decision regarding eligibility of projects for the extension of concession period, and the extent of time extension required may be taken by NHAI on a case to case basis based on the recommendation of the concerned Independent Engineer (IE). The concerned IE, both individual and the firm, shall be accountable for the assessment of the extension recommended in the concession period," the statement said.
Authority shall follow the guidelines while determining the period of delay not attributable to the concessionaire, it said adding, the projects using the special dispensation shall have to achieve physical completion in the next three years.
The statement said NHAI will be authorised to pay compensatory annuities to the concessionaire corresponding to the actual period of delay not attributable to the concessionaire upon successful completion of the project, i.E on achieving COD.
The number of annuities payable, including compensatory, will be capped by the number of annuities envisaged in the concession agreement.
