Lenders can now transfer stuck BOT projects to other developers

This move will draw a fine line of functional balance of public-private partnership for development of highway infrastructure in the country

A move that may provide relief to stuck highway projects, the National Highways Authority of India (NHAI) has introduced the ‘harmonious exit’ clause in the new concession pacts for build-operate-transfer (BOT) projects. 

The NHAI on Wednesday sought views on the draft model concession agreement, which mentions harmonious substitution of the concessionaire.

“This would essentially allow the lenders to transfer the stuck project to another construction company if the first one is unable to deliver on time,” an official said. 

According to the draft model concession agreement, the NHAI and the concessionaire would agree that in case of any financial default, the lender or