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New Delhi: The National Highways Authority of India (NHAI) has eased termination clause for the concession period.
This will make highway projects more attractive for private developers. NHAI has increased the duration of levying toll charges even if the traffic volume has crossed 60,000 passenger car units (PCUs) a day for the last three consecutive years.
Under the earlier norms, the concession given to the private developer was terminated if the traffic volume breached the threshold level of 60,000 PCUs for three consecutive years. The industry players were demanding a change in this clause for a long time.
“We have changed the provisions and the concession period can now be increased by up to five years to provide incentive to the developer,” NHAI member (finance) A Didar Singh said on the sidelines of a CII conference. However, the developer would have to build an additional lane on either side of the highway to enjoy the relaxed norms, Singh added.
NHAI has also changed the ‘Conflict of Interest’ clause by raising the cross-holding limit in two companies bidding for the same project to 25%. Earlier, a company holding more than 5% in another bidder for the same project would be disqualified. “We have raised the limit to 25% now,” Singh said.
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