Highways Ministry releases over Rs 10,000 crore for developers to expedite work
This grant also aims to boost the Athmanirbhar scheme
The Ministry of Road Transport and Highways (MoRTH) has granted Rs 10,000 crore to developers in order to push and expedite work amid the COVID-19 pandemic, the ministry said in a statement.
This grant also aims to boost the Athmanirbhar scheme, with another tranche of Rs 2,475 crore planned to be released.
"A sum of Rs 10,339 crore has been released by the Ministry of Road Transport and Highways 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.
A number of steps have been taken to ensure not just ease of doing business, but also to boost stakeholder confidence in building quality road infrastructure according to the statement.
The government said it has extended a number of relief packages for its contractors and concessionaires.
"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/ BOT Contracts, performance guarantee is released on pro-rata basis. Out of total 1253 applications under 1,155 projects for this relief, Rs 3,527 crore has been released, while over Rs 189 crore is under process, the statement said.
The extension is being given to contractors/concessionaires for meeting their obligation under the contract for up to six months, depending on site conditions.
For all National Highway Tolling Contracts, loss in collection of a fee (remittances) is compensated in accordance with the contract, according to the statement.
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, the statement said.