The toll hike on the NICE road, built by the Nandi Economic Corridor Enterprises Limited (NECEL), will continue to be in force for the time-being as the company has responded to the notice issued by the PWD earlier this month and stated that it would not withdraw the hike.
On July 9, the PWD had issued a notice to NECEL in which it said that the hike, in force from July 1, was not permitted as the permission of the State government had not been obtained. This was a violation of the framework agreement, PWD officials had said.
The toll hike, the first time in 4 years, was opposed by the government on the grounds that the company had failed to construct a concrete road for the expressway, link road and peripheral road which was supposed to be completed by March 2012. However, in its reply, NECEL has asked the PWD to withdraw the notice issued to it and has pointed out that the stand taken by the Department could not be legally defended.
In a 9 page rebuttal to the notice, the company says that it would ‘resolutely’ defend its right to collect the increased toll and said that any action by the State government in this matter would be challenged legally by the company.
The response accuses the PWD of selectively applying sections of the Framework Agreement while not taking into account earlier correspondence in the matter. PWD officials could not be reached on Wednesday for comment.