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.