Govt releases over Rs 10,000 crore to expedite highways work

To expedite the highway construction during coronavirus pandemic, the Union Ministry of Road Transport and Highways has released Rs 10,000 crore to developers for past few months.

"A sum of Rs 10,339 crore has been released by the Ministry of Road Transport and Highways (MoRTH) during the Covid-19 period under the simplified payment process as envisaged in the ambitious atmanirbhar Bharat scheme. Another sum of Rs 2,475 crore is being processed and is likely to be released soon," the Ministry said in a statement.

The Ministry of Road Transport and Highways has simplified the payment process under the atmanirbhar Bharat scheme, and contractors'' payments are being made every month instead of milestone achievement basis.

Besides, the government has also extended a number of relief packages for its contractors and concessionaires owing to the Covid-19 scenario.

"Retention money (which is a part of the performance security till construction period) is being released in proportion to the work already executed in accordance with the Contract specification, and retention money for up to six months'' period is not deducted from the bills raised by the Contractor," the statement said.

For HAM (hybrid, annuity mode)/ BOT (build, operate, transfer) contracts, performance guarantee is released on pro-rata basis, it said, adding out of total 1,253 applications under 1,155 projects for this relief, Rs 3,527 crore has been released, while over Rs 189 crore is under process.

The extension is being given to contractors/concessionaires for meeting their obligation under the contract for up to six months, depending on site conditions.

Direct payment is being made to approved sub-contractor through an escrow account, it said, adding out of total 21 applications under 19 projects for this relief, Rs 241 crore has been released, while over Rs 27 crore is under process.

For loss in collection of the user fee, the concession period is extended in accordance with the contract till the time daily collection is below 90 per cent of the average daily fee, the ministry noted.

For all National Highway Tolling Contracts, loss in collection of a fee (remittances) is compensated in accordance with the contract, it added.

The Ministry has also undertaken settling of contractors issues, including dues, through arbitration, the statement said.