NHAI allows premium rejig for some stressed projects

NEW DELHI: The National Highways Authority of India (NHAI) board has cleared nine proposals that had come up for deferment of premium obligations. In all, these nine proposals involve deferment of premium for a total value of Rs5,959.93 crore. In 2014-15, developers of these projects together would be allowed to defer Rs651.30 crore.

The period for which the deferment is considered is between 2014-15 and 2026-27. ET reported on Friday that the board would allow this relief measure for nine of the 15 projects on which various developers had sought deferment of premium. The remaining cases, said officials, are not yet eligible for the bailout and would be taken up at a later date when deemed ready for it.

“This step would give huge comfort to the lenders as debt obligation would now get priority over the premium payable to NHAI. NHAI would be able to recover the deferred premium with interest in the latter period of the concession,” it said in a press statement. The amount of deferment will be limited to the actual revenue shortfall after meeting the debt obligation and operation expenditure.

Until the shortfall in premium is not repaid, the concessionaire will not be allowed to declare any dividend. In addition, the concessionaire would also have to share, on a real-time basis, toll collection data with NHAI.