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Toll collection period in contracts to be extended to compensate operators

India Ratings and Research says the lockdowns would hit infrastructure construction and revenue growth of the implementing companies

The authority had estimated around Rs 4,995 crore from monetisation of this tranche of 566 km of highways under the TOT model, sources said. The first bundle of the monetisation programme gave NHAI Rs 9,682 crore

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The clause, said a National Highways Authority of India official, had been invoked for all such projects, as is allowed in the contracts signed with contractors.

Megha Manchanda New Delhi

2 min read Last Updated : Mar 29 2020 | 12:32 AM IST

With toll collection on national highways suspended across the country amid the Covid-19 crisis, the operators will be compensated through extension of their collection period by the same number of days for which the non-tolling is in force.

The government has also invoked the “force majeure” clause — the term for an unforeseeable circumstance or incident that prevents someone from fulfilling a contract. It is included in contracts to remove liability for natural and unavoidable catastrophes that interrupt the expected course of events and restrict participants from fulfilling obligations.

The clause, said a National Highways Authority of India official, had

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