The NHAI proposal to extend the concession period and Covid-19 loan for operational BOT (Toll) projects and non-treatment of toll suspension as political force majeure could become contentious, according to ICRA.
Extension of the concession period by the NHAI and the Covid-19 loan for Operational BOT (Toll) projects does not compensate for loss in net present value terms for majority of the projects.
For entities who have not opted for moratorium on project loans earlier, the Covid-19 loan is a positive in terms of liquidity.
The Ministry of Road Transportation and Highways had suspended tolling on all national highways for a 25-day period between March 26, 2020 to April 19, 2020.
