Road project contractors likely to get extension for project execution
The government is also looking at unveiling sector-specific relief measures
Road project contractors are likely to get timelines extension for project execution, compensation for loss of business, and speedier payments to uplift their liquidity flow as part of COVID-19 relief package.
The Highway Ministry is examining the issue faced by the contractors and likely to unveil steps for their resolution soon.
Toll road operators will also be compensated for loss of business due to fall in traffic and toll exemption.
The government is also looking at unveiling sector-specific relief measures for industries affected by COVID-19 outbreak.
The extension will be equal to the duration of the time when business activity was not allowed due to the pandemic. The Ministry is also reworking on the payment mechanism for road developers to ease their liquidity flow. It is looking at changing the payment cycle and making it shorter. This will ensure that the smaller contractors also get paid.
A final estimate of the claims that will have to be borne by the National Highways Authority of India (NHAI) in terms of costs of idling, and delay in projects, is also being worked out by the officials