Other issues raised include the termination clause in the contract as per which, if the traffic exceeds a certain percentage for three consecutive years on a highway, the developer is barred from collecting toll. But, if the project runs into losses, the government does not share the burden with the private developer. According to developers , the NHAI has indicated that the loss is a part of the business and the government would not be able to share it.

Road to cost cutting

• NHAI says stretches on NHDP III and V can be left at two lanes in order for developers’ investment to come down

• This may require changes to the model concession agreement (MCA) as it only provides for four- and six-laning

• However, two-lane highways are not as safe as four- and six-lanes as they do not have the median divider