The National Highways Authority of India (NHAI) board approved deferment of premiums for nine road projects executed under Public private partnership mechanisms.
The firms involved in the nine projects will be able to postpone payment of Rs 6.513 billion (US$110.7 million) in premiums, the amount offered by a developer to the Government to bag the right to develop, maintain and collect tolls from road users, to NHAI in 2013-14.
The projects total investment is estimated at Rs59.6 billion (US$1.01 billion). The nine PPP road projects are the following:
- Godhara - Gujarat / Madhya Pradesh border. Developer: BSCPL. Total premium postponer is Rs 82.2 million.
- Beawar - Pali - Pindwara. Developer: L&T. Total premium postponer is Rs 1,704 million.
- Samakhiyali - Gandhidham. Developer: L&T. Total premium postponer is Rs 243.8 million.
- Hyderabad - Yadgiri. Developer: Sadbhav Engineering. Total premium postponer is Rs 129 million.
- Ahmedabad - Vadodara. Developer: IRB Infrastructure. Total premium postponer is Rs 2,367.1 million.
- Tumkur - Chitradurga. Developer: IRB Infrastructure. Total premium postponer is Rs 814.5 million.
- Indore - Dewas. Developer: Gayatri-DLF. Total premium postponer is Rs 292.9 million.
- Hosur - Krishangiri. Developer: Reliance Infra. Total premium postponer is Rs 407 million.
Developers can defer premium payment only if they do not collect enough toll revenue in a year to pay for it after servicing debt and operations and maintenance costs. While allowing the deferment, the NHAI has made it mandatory for a developer to share toll-collection data with it on a real-time basis.