NHAI extends project deadlines for road developers but cost overruns not addressed
Mumbai: The National Highways Authority of India (NHAI) will allow highway developers an additional three-month leeway to meet completion deadlines that are running late because of covid-related delays. The deadline extension will be granted without the imposition of any additional costs or penalties but only on a case-to-case basis, the nodal road transport authority decided after a meeting with stakeholders last week.
This is among a host of decisions taken by the NHAI to speed up road-building as part of new policy guidelines. Mint has seen a copy of the document laying out these rules, which includes clarifications on EPC (engineering, procurement, construction) contractors being asked to complete work although it has been de-scoped by the NHAI and allowing compensation to HAM (hybrid annuity model) developers in event of a payment default by the government authority.
However, the discussion skirted any mention of the biggest risk for HAM developers at the moment – falling policy rates by the central bank.
