NHAI to rework on model concession agreement

01 Aug 2013 Editorial Team

The National Highways Authority of India (NHAI) plans to rework the model concession agreement (MCA) for highway projects that was redrafted just three years back after road developers sought changes to the model agreement amid a slowing economy. NHAI had asked developers, lenders, consultants and industry bodies to give their feedback on the current model concession agreement in the context of the changed economic scenario, said a senior official at NHAI.

NHAI has received suggestions, including making lenders a party to the concession agreement that currently is between the concessionaire and NHAI, enabling quicker equity transfer, updating the total project cost at the time of inviting bids and a mechanism to address cost escalation after signing the concession agreement.

The last time changes were made to the model concession agreement for highway projects was in 2009, in line with recommendations of the BK Chaturvedi Committee. Other suggestions include assigning the official date for the commencement of a project, or the so-called appointed date, after environmental clearances are in place, at least 80 per cent of the land required is acquired and the concessionaire has tied up required funds.

What is happening now is that though the agency acquiring land gets legal right for buying land from the owner till the appointed date, many times it has been seen that hurdles arise during the actual change of hands i.e. paying of the compensation. So, actually land is not available for construction. It is now being suggested to give the appointed date only after the compensation has been paid and physically the land is handed over.

After the preparation of a note incorporating the suggestions, the NHAI will take it to an inter-ministerial group for discussing the rationale for the changes requested.

Infrastructure Transport

18 Dec 2025

RVNL secures Rs 1.65 billion railway bridge project from North Eastern Railway

Rail Vikas Nigam (RVNL) has received a Letter of Award (LoA) from North Eastern Railway for a Rs 1.65 billion railway infrastructure project, strengthening its order book and showcasing its expertise in complex railway construction.The project involves constructing the substructure of a major railway bridge over the Gandak River, located between Paniyahwa and Valmikinagar stations. This is part of the doubling of the Gorakhpur Cantt–Valmikinagar railway section, aimed at improving line capacity and operational efficiency.The bridge will feature 14 spans of 61 metres each, built on double D-t..

Raebareli’s Modern Coach Factory rolls out 15,000th railway coach

The Modern Coach Factory (MCF) at Raebareli in Uttar Pradesh has achieved a major manufacturing milestone with the rollout of its 15,000th railway coach on December 15, the Ministry of Railways said.In a press note, the ministry said that MCF has already produced 1,310 coaches in the current financial year 2025–26, reflecting sustained high output at one of Indian Railways’ most advanced passenger coach manufacturing units.Established in 2007 at Lalganj in Raebareli district, MCF was built at a cost of Rs 31.92 billion with an initial annual production capacity of 1,000 coaches. The factor..

RailTel wins Rs 260.88 million IT infrastructure order from VOC Port

Navratna public sector undertaking RailTel Corporation of India has secured an IT infrastructure order worth Rs 260.88 million from V.O. Chidambaranar Port Authority (VOC Port), strengthening its presence in port-led digital transformation projects.According to an exchange filing dated December 16, 2025, RailTel has received a Letter of Acceptance (LoA) from VOC Port Authority for the implementation of advanced IT infrastructure at the port. The project is domestic in nature and is scheduled to be completed by August 15, 2026.The company said the order has been awarded in the normal course of ..