NHAI likely to compensate Rs 500 cr to BOT developers

22 Jul 2021 CW Team

The action will also mean the postponement of the concession period equal to the period during which the concessionaire was prevented from collecting toll fees.

Due to the farmers' agitation that began in October last year, the toll collection on 52 plazas has been affected. Rs 7 crore toll was the amount that should be collected daily on these plazas. As indicated by Icra, from the beginning of the protest till June 30, 2021, the cumulative loss would be around Rs 1,600 crore, including Rs 400 crore on public-funded projects.

Icra's Rajeshwar Burla told the media that NHAI's action would cover around 40-45% of the loss of revenue incurred by the affected projects, according to their estimates. The overall toll loss for the BOT concessionaires is around Rs 1,200 crores, as estimated until June 30, 2021. Therefore, the compensation payable would be in the range of Rs 450-500 crore.

They said that according to the concession agreement, in case the concessionaire was unable to collect fee despite making best efforts or it was ordered by the authority to suspend the collection there during the subsistence of such force majeure event; the concession period will be postponed by a period, equal in length to thereof during which the concessionaire was prevented from the collection of fees.

NHAI shall extend the concession period in proportion to the loss of fee daily in the event of partial collection of free where the daily collection is less than 90% of the average daily fee.

Image Source

Also read: Toll collection surges to Rs 2,576.28 crore in June

The National Highways Authority of India (NHAI) is likely to pay around Rs 500 crore as compensation to the build-operate-transfer (BOT) concessionaires operating national highways in Haryana, Punjab and Delhi-NCR after they decided to declare farmers' agitation, which affected toll collection. The action will also mean the postponement of the concession period equal to the period during which the concessionaire was prevented from collecting toll fees. Due to the farmers' agitation that began in October last year, the toll collection on 52 plazas has been affected. Rs 7 crore toll was the amount that should be collected daily on these plazas. As indicated by Icra, from the beginning of the protest till June 30, 2021, the cumulative loss would be around Rs 1,600 crore, including Rs 400 crore on public-funded projects. Icra's Rajeshwar Burla told the media that NHAI's action would cover around 40-45% of the loss of revenue incurred by the affected projects, according to their estimates. The overall toll loss for the BOT concessionaires is around Rs 1,200 crores, as estimated until June 30, 2021. Therefore, the compensation payable would be in the range of Rs 450-500 crore. They said that according to the concession agreement, in case the concessionaire was unable to collect fee despite making best efforts or it was ordered by the authority to suspend the collection there during the subsistence of such force majeure event; the concession period will be postponed by a period, equal in length to thereof during which the concessionaire was prevented from the collection of fees. NHAI shall extend the concession period in proportion to the loss of fee daily in the event of partial collection of free where the daily collection is less than 90% of the average daily fee. Image Source Also read: Toll collection surges to Rs 2,576.28 crore in June

Resources

09 Mar 2026

Haworth India Hosts Women’s Leadership Panel Series

Haworth India marked International Women’s Day by hosting a leadership roundtable series titled ‘Give to Gain’, bringing together senior women leaders from architecture and design firms, corporates and project management consultancies. The series has been conducted in Delhi and Mumbai, with upcoming sessions scheduled in Bengaluru and Hyderabad on 27 March 2026. Structured as moderated panel discussions followed by audience interaction, the initiative examined the business impact of women’s leadership and the role of inclusive workplaces in supporting professional growth. Manish Khan..

Real Estate

09 Mar 2026

Max Estates Secures RERA For Max One Project

Max Estates has secured RERA approval (UPRERA No.: UPRERAPRJ9759) for its Max One development around Max Towers in Sector 16B, Noida, bringing renewed progress to a project previously stalled following the insolvency of its earlier developer. Spread across around 10 acres with an estimated development potential of about 2.5 million sq ft, Max One is planned as an integrated mixed-use campus combining serviced residences, premium offices, retail spaces and a private club. The project is expected to generate total sales potential of about Rs 20 billion along with an estimated annuity rental inc..

Real Estate

09 Mar 2026

Hindware Introduces Starc Smart Wall Mount Toilet

Hindware has introduced the Starc Smart Wall-Mount Toilet under its Hindware Italian Collection, designed to combine automation, hygiene and contemporary bathroom aesthetics. The model features automatic flushing, sensor-based seat opening and closing, and remote-controlled functions. It also includes an oscillating water spray and warm air dryer for cleaning, along with a self-cleaning nozzle designed to maintain hygiene. Additional features include adjustable heated seating, customisable water temperature and pressure settings, a foot-touch flush system and an LCD control interface. The wa..