NHAI ready to discuss GMRs proposal for financial relief

We will be discussing the relief proposal by GMR in our board meeting on March 26. The key issue to be discussed will be on providing an interim relief on the payment of premium for initial years, said a senior NHAI official.

GMR Infrastructure seeks discount in the payment of Rs 636 crore premium during the initial years but in a way that the earnings of NHAI in terms of net present value is not affected.

The board,however,is unlikely clear the proposal as the solution provided by GMR is not in accordance with the model concession agreement MCA. The proposal offered by GMR may not be approved by the representatives of the Planning Commission and finance ministry, said the official. The NHAI board has planning commission secretary and expenditure secretary as members.

The proposal by GMR has also not found favour from officials in the road transport ministry,who believe that the solution will not be easy to implement.

We are working out a solution for the whole road sector and whatever is cleared by the government will be for the sector and not one company, said a senior road transport ministry official. Road secretary Vijay Chibber is a member on the NHAI board.