NHAI extension in concession time for BOT toll projects is pointless: Icra

It does not compensate for loss in net present value terms for most Build-Operate-Transfer toll projects, says agency

The extension in concession period, by the National Highways Authority of India (NHAI) with the idea of compensating companies for loss in toll collection during the first phase of the nationwide lockdown fails to do the needful for some highway projects, ratings agency Icra said.

Extension in concession period by NHAI does not compensate for loss in net present value terms for majority of BOT (Build-Operate-Transfer) toll projects. For the entities who have not opted for moratorium on project loans earlier, Covid-19 loan from NHAI is a positive in terms of liquidity.

It can be noticed that projects with revenue loss upto