Plans afoot to offer relief to highway contractors
Union minister for road transport and highways (MoRTH), Nitin Gadkari, has decided to hold a meeting with his ministry's top brass and those from the National Highways Authority of India to discuss relief measures for highway contractors affected by the second wave of Covid-19. The industry has approached the government for fresh relief measures or a continuation of the relief announced last year. The ministry has been receiving representation from concessionaires for relief. Unlike last year, when the first wave of Covid-19 hit, India has avoided a nationwide lockdown this year, though the second wave has been more deadly. While construction work wasn't be restricted in most places, labours have migrated to their home states and on-site infections have also slowed down highway construction. In a representation sent to the highways ministry recently, the National Highways Builders Federation said the second wave of Covid-19 has severely affected and continues to affect the progress of works, and consequently, EPC contractors, concessionaires have been affected financially, but are simultaneously providing adequate facilities to the labourers, staff and bearing all the expenses including their Covid treatment, among other facilities. Given this, MoRTH is requested to extend various relief measures, as granted earlier under Atmanirbhar Bharat Scheme by MoRTH / NHAI. In June last year, the ministry, as part of the Atmanirbhar Bharat initiative, rolled out several relief measures for highway concessionaires, which included payments for the amount of work done, monthly payments to ensure availability of working capital, and payments to subcontractors to ensure adequate liquidity to small players. The industry body has asked for a decision to release retention money in proportion to the works executed under the contract specifications to be extended till March 2022. For HAM (Hybrid Annuity Model) projects, where performance guarantee was reduced to 3% from 5% of bid project cost, it should be extended till March 2022 again, and that a three to six months extension of time should be given to concessionaires for the achievement of financial closure.
📅Published on:
26 May 2021
🔗Share:
We Value Your Comment
⭐How useful is this information?
Submitting...
03
Thanks for your rating! ✌️ We’d love to hear more - share your thoughts by leaving a comment
Allcargo Logistics Limited has announced its initiative to enable FMCG companies to navigate increasingly fragmented inventory flows through integrated,
GHV Infra Projects Limited has secured a road construction and civil works contract worth Rs 815 crore from APCO Infratech Private Limited in Maharashtra.
JCB India announced the inauguration of a new facility of its dealer, Caculo Earthmovers in Karaswada, North Goa, further strengthening its presence in the
The Godhra–Vadodara section of the Delhi–Mumbai Expressway has been completed and opened for traffic on a trial basis from April 13, 2026, according to the
The Rajasthan State Industrial Development and Investment Corporation will invest Rs 1,200 crore to upgrade infrastructure across more than 450 industrial
Dubai has completed its first air taxi station near Dubai International Airport, marking a major step toward launching electric air mobility services later
Informa Markets in India is gearing up to host the 23rd edition of Roof India, Asia’s premier exhibition for roofing and allied products, from 23–25 April 2026
NBM Media
30+ years of reporting on infrastructure, construction, architecture, & real estate across print, digital, and social media.
