Concession Agreement Nhai

In the current fiscal year, the company has entered into concession contracts for four (4) national highway projects, including the aforementioned project, which will be executed according to the HAM model with NHAI for a total project cost of RS 6596.0 billion. The Ministry of Road Transport and Motorways has introduced the hybrid annuity model for the implementation of motorway projects in order to promote private sector participation through appropriate incentives. The objective is to maximize the quantum of highway projects implemented within the limits of the government`s available financial resources. According to this model, 40% of the project costs must be paid by the government as “construction support” for the private developer during the construction period and 60% in repo during the duration of the concession, as well as interest on the outstanding amount to the concessionaire. There is a separate provision for O&M payments made by the government to the concessionaire. The individual does not have to bear the risk of traffic. All payments were indexed to inflation by a multiple price index, which is a weighted average of WPI and CPI (IW) on a 70:30 basis. This reduces the risk of inflation for the developer. PNC Infratech signed the concession contract with the National Highways Authority of India (NHAI) on 31 August 2020 for the following national motorway project: the company has also entered into agreements for two national motorway projects in EPC mode with NHAI on an overall value of Rs. 1547.8 crore, in the current financial yes In the TOT model, the right to collect and use royalties for certain national highway (NH) operational projects built with public funds is awarded to concessionaires (developers/investors) for a predetermined concession period to NHAI in return for advance payment of a lump sum. This transfer of rights is based on the toll revenue potential of the identified NH projects. The operation and maintenance (O&M) obligations of such projects are due to the concessionaire until the end of the concession period. The concessionaires of these projects shall be designated under a transparent and uniform procurement procedure within a pre-established and approved implementation framework.

Four-lane section Meerut – Babad Nazi of NH-119 (New NH-34) of design chain Km 11 + 500 (Meerut) to 39,250 (Behsuma) and km 79,500 (Bijnor) to 105,700 (Jalalabad) in the state of Uttar Pradesh, under Bharatmala Pariyojna, in hybrid annuity mode (HAM) The government has approved the proposal to allow NHAI, monetize publicly funded NH projects, which are in service and generate toll revenue for at least two years after the COD by the toll operate Transfer (ToT) Model, subject to authorization from the competent authority of MoRTH/NHAI on a case-by-case basis. . . .

Comments are closed.