Relief expected to road infra majors in paying premiums

09 Apr 2013 Editorial Team

The Union government may allow road construction companies, which have taken up highway projects, to restructure the payment of premium amount to be paid to it (the government). Hence infrastructure majors, including L&T, IRB, GVK and GMR, can expect relief in executing highway projects, which they have bagged by quoting high premium - upfront revenue to the government - a year ago.

The Union Highways Ministry would put forth a proposal before the Cabinet soon that would allow the companies to restructure the payment of premium amount. The Ministry is likely to push the proposal after the National Highway Authority of India (NHAI) board has cited that big-ticket projects are not taking off due to changed market condition, where private developers are facing difficulty to raise equity.

If the proposal gets the government's nod, at least a dozen projects would benefit. All these projects were bagged by developers quoting over Rs 30 crore annual premiums. Recently, the NHAI board had considered the case of GMR to restructure the annual premium payment of Rs 636 crore to make the execution of Kishangarh-Udaipur-Ahmedabad project viable.

Infrastructure Transport

19 Dec 2025

Tripura Rail Survey Approved For Jirania–Bodhjung Link

The Ministry of Railways has approved a Final Location Survey (FLS) for a proposed new railway line between Jirania and Bodhjung Nagar in Tripura. The planned section will span 14 km and is estimated to cost around Rs 4.2 million, with the entire alignment located within West Tripura district. The approval marks a key step towards strengthening railway infrastructure and supporting industrial growth in the state. Bodhjung Nagar is Tripura’s principal industrial and commercial hub, developed mainly for resource-based industries such as rubber, bamboo and food processing. The proposed Jirania..

MCF Raebareli Rolls Out Its 15,000th Passenger Coach

The Modern Coach Factory (MCF) in Raebareli, Uttar Pradesh, has reached a major production milestone with the manufacture of its 15,000th passenger coach on December 15, the Ministry of Railways said. During the current financial year 2025–26, the unit has produced a total of 1,310 coaches so far. Established in 2007 at Lalganj in Raebareli, MCF is among India’s most advanced passenger coach manufacturing facilities. Built at a cost of around Rs 31.92 billion, the factory has an installed annual capacity of 1,000 coaches and is located about 3 km from Lalganj on the Kanpur–Raebareli Roa..

RVNL Wins Gandak River Rail Bridge Contract

Rail Vikas Nigam Limited (RVNL) has received a Letter of Award from North Eastern Railway for a major railway infrastructure project valued at Rs 1.65 billion. The contract relates to the construction of the substructure for a key railway bridge over the Gandak River. The bridge will be constructed between Paniyahwa and Valmikinagar stations as part of the doubling of the Gorakhpur Cantt–Valmikinagar railway section. Designed to enhance capacity and operational efficiency, the structure will comprise 14 spans of 61 metres each and will be supported by double D-type well foundations. The des..