Speed Post News Network
New Delhi : Ministry of Road Transport and Highways (MoRTH) has undertaken settling of contractors’ issues, including dues, through arbitration in big way to not only ensure ease of doing business but also to boost stakeholders’ confidence in building quality road infrastructure in the country.
Conciliation Committees have been formed consisting of Independent Experts for this purpose. All contractors are being called for conciliations for expeditious settlement of their claims and get their payments released immediately. Fortyseven cases involving claims of Rs 14,248 crore have been settled this year. Discussions are underway on another 59 cases.
The annual Annuity obligations for NHAI are approx. Rs 5,000 crore. All Annuities payments are made in time. In Hybrid Annuity Model (HAM) projects, NHAI provides 40 per cent of the Bid Project Cost as Construction Support based on achievement of Milestone. Whenever the milestones are achieved, payments are made quickly. The Grant /VGF towards BOT (Toll) Projects are paid as per the terms of the Concession Agreement and depends on many factors including physical progress, equity and debt infusion.
There are no overdue payments pending with NHAI. Various systems have been introduced for immediate payment of dues. Special efforts were made and over Rs ten thousand crore were disbursed towards various payments in the first nine days of nationwide lockdown, according to a PIB release. The payment structure has been further simplified under the Atm-Nirbhar Bharat scheme, and contractors’ payments are being made every month instead of Milestone achievement basis. This has proved extremely beneficial in timely completion of National Highway projects in the country.
The Ministry has also extended a number of relief packages for its contractors and concessionaires owing to 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. For HAM/ BOT Contracts, Performance Guarantee is released on pro-rata basis. 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.
Extension of Time is being given to Contractor/ Concessionaire for meeting their obligation under the Contract for up to six months depending on site conditions. Out of total 207 applications under 196 projects for this relief, Rs 34 crore has been released while Rs 15 crore is under process.
Direct payment is made to approved Sub-Contractor through Escrow Account. 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 all National Highway Tolling Contracts, loss in collection of fee (remittances) is compensated in accordance with the Contract. An application for this relief is under consideration.