NHAI considers options to carry out remaining work on Jaipur-Gurgaon stretch
The National Highways Authority of India (NHAI), after serving an “intention to issue termination notice” to the concessionaire on February 11 is now pondering all alternatives to carry out the remaining work on the Jaipur-Gurgaon stretch of National Highway 8.But the highway users will have to face misery for few more months because of limited options available.
NHAI will take the final decision on the contract agreement within 15 days of serving notice. However among the possible outcomes, the concessionaire may agree to finish the remaining work on time. If NHAI finds their reply unsatisfactory, the bankers will get 180 days time to substitute the developer, on their failing to do so NHAI will take over the project.
There are chances that Pink City Expressway Private Limited (PCEPL) may agree to finish the remaining work on time. AK Mishra, chief general manager (technical), NHAI, Rajasthan said “There is lot of money at stake in this project. If NHAI takes over the project the banks will lose out the money they invested in the project.”
Unless the developer gets the certificate of commercial operations date (COD), it will not be liable to pay to banks as per the contract agreement. Company will have to finish the six-laning and 53 structures by July 15 and balance four structures in the project by October 15, 2014, if PCEPL continues.
In the intervening time, banks have the first to right to counterfeit the concessionaire if they succeed in finding one all the liability, debts, interest and balance, work of project will come over to new agency, which seems doubtful. Returns on investments are going to be very low as NHAI share from revenue will further increase from the present 51% and due to constant delays, the project cost escalation has been very high.
Mr.AK Mishra added “There have been hardly any instances where banks were able to find the substitute. No one would like to get into the project marred with delays and unavailability of land.”
NHAI’s final option is to complete the project on its own. The government from its own pocket will fund the project, to finish the project through EPC (engineering procurement construction).
Mr. AK Mishra further added “Best possible solution for taking up the balance activity on the project shall be arrived upon soon. All our actions are within the contractual provisions and in the interest of commuters”.
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