The National Highway Authority of India (NHAI) has proposed few changes in the regulatory guidelines for allocating road projects under the Model Concession Agreement for BOT (Toll) Projects. Keeping this in view, the authority has sought suggestions from the from road developers, lenders, consultants, bankers, industry bodies and other stakeholders on the revised draft. The new deadline to submit comments/suggestion is January 17, 2020.
“NHAI is in the process of reviving the BOT (Toll) mode and amendments proposed in Model Concession Agreement (MCA) are in sync with this objective,” a statement released by the authority stated.
“The major modifications proposed in the MCA are related to capping of liabilities of either party throughout the subsistence of the Agreement, tightening of conditions precedent prior to declaration of Appointed Date, and amendment in dispute resolution mechanism,” the statement added.
Under the project, a private entity is required to build, design and operate the road and transfer it back to the government. The same will be responsible to bring finance for the projects and collect revenue from the users.
“The suggested modifications also aim to incorporate recent policy initiatives of the MoRTH such as resolution of Stuck National Highway (NH) projects, introduction of a concept of mutual foreclosure of the agreement, Harmonious Substitution of the Concessionaire etc,” it said.