The ministry of road transport and highways (MoRTH) has extended a set of relief measures, aimed at improving liquidity of the highway contractors and concessionaires, till October 31, 2022. According to a MoRTH notification issued Monday, hybrid annuity model (HAM) and engineering procurement & construction (EPC) contractors will continue to get monthly payments for their work done for the period between April 1 and October 31. As per an earlier order, these incentives were to end on March 31, 2022.
“ln case of build-operate-transfer (BOT)/toll-operate-transfer (TOT) concessionaire, for reduction in collection of user fee, the concession period is to be extended as per provisions in the concession agreement,” the notification said. As per the concession agreement, the loss in collection of user fee is compensated by extending the concession period till the time daily collection touches 90% of the average daily fee.
“For all national highway tolling contracts, reduction in collection of fees may be compensated in accordance with the user fee collection contracts,” the ministry said.
Extension of time will be granted to concessionaire for achievement of financial closure in the concession agreements entered between April-June 2022 for a period of one month from the due dates, as per provisions of the contract, depending on the location of the project.
The ministry has directed all implementing agencies, including the National Highways Authority of India, to make direct payments to approved sub-contractors through escrow accounts. MoRTH has already decided to reduce performance security from existing 5-10% to 3% of the value of the contract for all existing contracts, barring those involved in arbitration.
