First lot of rescue for road builders.

In a major relief to road developers, the National Highways Authority of India (NHAI) has approved deferment of premium worth Rs. 6,000 crore for nine projects, including those of Larsen & Toubro and Reliance Infrastructure.

The board of NHAI met recently and gave a final approval to the nine applications, said a senior official. The deferment would be available from 2014-15 till 2026-27, with the deferment granted during 2014-15 amounting to Rs. 651.3 crore.

NHAI had received about 15 applications for rescheduling of premium. Five projects were not taken up by the board as they do not qualify for the scheme immediately under the rescheduling policy of the government. 'Developers of these projects would be informed that they do not require any rescheduling of premium immediately. They might require it during 2016-17,' the official said.

The projects in which deferment of premium was allowed are four-laning and six-laning ones. In the former are the Godhra-Gujarat/MP border of BSCPL), Beawar-Pali-Pindwara (L&T), Rohtak-Panipat (Sadbhav) and Hyderabad-Yadgiri (Sadbhav). The six-laning ones are Samakhiyali-Gandhidham (L&T), Hosur-Krishnagiri (Reliance Infra), Tumkur-Chitradurga, (IRB), Ahmedabad– Vadodara (IRB) and Indore-Dewas (Gayatri-DLF).

There are 39 projects eligible for the relaxation under the rescheduling policy. The combined premium these developers owe the government is Rs. 25,000 crore spread over the next 20 years. Five projects, including those of Sadbhav Engineering, Reliance Infrastructure and Oriental Structural Engineers, have not been qualified for rescheduling.

BS