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Ministry designs new agreement for four-laning of highways

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  • In case the concessionaire achieves completion of the project before time then it shall be entitled to receive from the authority a bonus for early completion. In case the concessionaire achieves completion later than the commercial operation date, it shall be liable for reduction in its first annuity for delayed completion of the project. There are similar penalties for the concessionaire if he or she is unable to complete maintenance on time and thereby blocks a lane to traffic for a longer period.

    Upon termination on account of a concessionaire default, the NHAI shall pay termination payment, an amount equal to the discounted value of future annuity payments, the discounting factor applied being the then SBI prime lending rate plus 3 per cent less insurance cover. Upon termination on account of an authority default, the authority shall pay to the concessionaire, by way of termination payment, an amount equal to the discounted value of future annuity payments, the discounting factor applied being the then SBI PLR minus 3 per cent.

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