+
Relief expected to road infra majors in paying premiums
ROADS & HIGHWAYS

Relief expected to road infra majors in paying premiums

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.

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.

Next Story
Real Estate

Shriram Properties Launches ‘Codename: The One’ in Bengaluru

Shriram Properties (SPL), a leading real estate developer focused on the mid-market and mid-premium segments, has announced the launch of its latest residential project under the banner “Codename: The One” in Bengaluru’s Electronic City corridor. This feature-rich gated community will offer 340 spacious 2- and 3-BHK residences, with a total saleable area of approximately 5 lakh square feet and an estimated revenue potential of over Rs 3.5 billion. The project is expected to be developed over a span of more than three years.  Strategically located near the Bommasandra Metro stat..

Next Story
Resources

India Warehousing Show 2025 Closes with Strong Global Presence

The 14th edition of the India Warehousing Show (IWS) 2025 concluded successfully at Yashobhoomi (IICC), Dwarka, drawing participation from over 300 exhibitors across 15 countries and welcoming 15,000+ visitors. Recognised as India’s leading platform for warehousing and logistics excellence, IWS 2025 offered a comprehensive display of cutting-edge automation, sustainable warehousing solutions, and next-gen supply chain technologies. The show was inaugurated by Shri Pankaj Kumar, Joint Secretary – Logistics, DPIIT, Ministry of Commerce and Industry, Government of India. In his opening a..

Next Story
Equipment

MHIET Launches 450kW Gas Cogeneration System with H₂ Co-Firing

Mitsubishi Heavy Industries Engine & Turbocharger (MHIET), part of the Mitsubishi Heavy Industries Group, has launched a new 450kW gas cogeneration system, the SGP M450, jointly developed with Toho Gas Co.,. The system supports hydrogen co-firing at up to 15 vol per cent, with no loss in performance or reliability.  The system is currently available in the Japanese market, and has been developed from the existing GS6R2 city gas engine platform. Key modifications were made to the fuel gas and engine control systems to enable hydrogen co-firing.   Verified through de..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?