NEW DELHI, May 23: The Road Transport and Highway Ministry has approved changes in the model concession agreement for toll projects under the build-operate-transfer mode to allow transfer of ownership after one year of commercial operations.
Earlier, the change of ownership was allowed two years after the beginning of the operation of such projects.
The Ministry of Road Transport and Highways (MoRTH) has approved changes in Model Concession Agreement (MCA) of Build-Operate-Transfer (BOT-toll) projects, permitting the change of ownership from existing two years to one year after Commercial Operation Date (COD), according to an office memorandum.
The memorandum further said the concessionaires applying for change of ownership should not be in default of payment of premium to state-owned National Highways Authority of India (NHAI).
“…Change in ownership clauses in the MCA of BOT (Toll) project was considered by the Inter-Ministerial Committee (IMC) in the meeting held on April 1, 2022.
“IMC concurred with the proposal permitting change of ownership from 2 years to 1 year after COD,” it said.
Subsequently, the office memorandum said the proposal has been approved by Road Transport and Highways Minister Nitin Gadkari.
According to a separate office memorandum, at the inter-ministerial committee meeting held on April 1, it was proposed that lowest quoted bid project cost may form the basis for awarding Hybrid Annuity Mode (HAM) projects.
Under HAM model, 40 per cent of the project cost is paid by the government/ executing agency as construction support/grant to the private developer and the balance 60 per cent is to be arranged by the successful bidder during the construction period. (PTI)
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