The twin relief measures for toll concessionaires in the form of an extension in the concession period, and a proposal to grant COVID-19 loans will cushion near-term cash flow mismatches and lessen the impact on long-term returns to a large extent.
However, the developers who have been approved a debt moratorium are not eligible for the COVID-19 loan. Therefore, the overall beneficiary net of the COVID-19 loan is reduced, according to India Ratings and Research.
The moratorium period extension to August 2020 is likely to help developers to tide over the muted revenue period whereas the increase in concession period on account of the subdued revenue due to the pandemic will ensure recovery of capital.
