NHAI’s relief measures for road developers inadequate: ICRA

Relief measures announced by the Ministry of Road Transport and Highways (MoRTH) are insufficient for road developers who did not collect toll tax for 25 days due to the nationwide lockdown, according to credit rating agency, ICRA.

The government had suspended the collection of toll tax on all national highways during 26 March-19 April.

In net present value terms, the measures do not adequately compensate for the losses incurred by majority of operational developer-run road projects, ICRA said.

According to ICRA’s estimate, the total operations and maintenance (O&M) expenses and interest costs for the build-operate-transfer (BOT) toll concessionaires for the 25-day period of toll suspension is estimated at ₹649 crore.

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