NHAI announces one time only exit policy

Updated: Jan 30 2014, 10:04am hrs
THE National Highways Authority of India (NHAI) said on Wednesday that the harmonious substitution of existing concessionaires or the selected bidders in public-private partnership (PPP) projects would be allowed only once

during the construction period. Notifying guidelines that will facilitate substitution of concessionaires, the highway authority said that in cases where

the responsibility for delays in executing or completing a project

was the Authoritys land acquisition and environmental clearances for instance no penalty would be levied on the concessionaire for not fulfilling its obligations.

In the event of a default situations where the concessionaire was likely to face financial distress and was likely to default in complying with the terms of the concession the NHAI board may levy a penalty, subject to a cap of 1% of the project cost, in the event of a default, keeping in mind the extent and nature of the default.