Last month, the highways regulator had terminated 20 highway development contracts citing 'default
Ban on all infrastructure companies, who were barred last week from participating in future National Highways Authority of India (NHAI) bids, may be withdrawn.
Last month, NHAI had terminated 20 highway development contracts citing 'default'. Multiple infrastructure majors including Larsen & Toubro, HCC, Supreme Infra, etc were named in the list.
Apart from terminating the existing contracts, the companies involved with the projects were barred from participating for new highway projects for 2-3 years. This would mean that these firms woyuld miss out on Bharatmala Projects that NHAI plans to start awarding during the second half of 2018.
Soon after the list was made public, the National Highways Builders Federation (NHBF) came together and discussed the matter with the authorities.
Later, during the weekend, the list was taken off the NHAI website.
A final outcome on the ongoing issue is likely today and sources said an amicable solution may be reached.
Among the 20 road projects, there are few projects wherein the case is either sub-judice or being heard with the Arbitration Tribunal. Despite no order from either the court or tribunal, NHAI went ahead barring the infrastructure company.
In another instance, the delay in completion of a project has been due to land acquisition, which is NHAI domain.
L&T did not respond to DNA Money's query on the issue, but HCC said, "The NHAI had uploaded the list of 20 projects on October 30, 2017 on its website and it stands withdrawn from NHAI portal on Friday November 3, 2017, after representation from concerned companies and industry bodies."
The statement said, "The HCC Built-Operate-Transfer project concerned, namely Raiganj Dalkhola Highways, has been delayed for six years due to land acquisition delays on account of NHAI. We feel that the action by NHAI is premature, especially considering since the alleged termination is undergoing an adjudication or conciliation process. We are glad that overall list and thereby HCC's name has been withdrawn."
Abhaya K Agarwal, partner, infrastructure and PPP leader, EY, said, "The government will have to see the root cause and address that cause."
ROAD CLEARED
- Last month, the highways regulator had terminated 20 highway development contracts citing 'default'
- Multiple infrastructure majors including Larsen & Toubro, HCC, Supreme Infra, etc were named in the list
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