Ministry of Highways releases Rs 10,339 crore for construction of road network

Despite COVID-19 pandemic, the Ministry of Road Transport and Highways has not stopped development work and it has released Rs 10,339 crore to the developers to expedite the construction of highways and to give a considerable boost to the ‘Atmanirbhar Bharat’ scheme.

The ministry is also in the process of releasing another Rs 2475 crore soon. In order to boost the confidence of the stakeholders involved, it has taken various steps like simplifying the process of payment being made to contractors under the Atmanirbhar Bharat scheme, among others. According to the ministry, such steps are being instrumental in on-time completion of highway projects.

Owing to the disruptions due to the COVID-19 pandemic, the ministry has already extended several relief packages for the contractors as well as the concessionaire. For example, retention money which earlier had to be the part of performance security is being released. It’s being released in proportion to already executed work and in accordance with the specification of the contract. Moreover, the retention money is not deducted for the period up to six months from the bills of the contractor.

The contractors are also given an extension of time so that they could meet their obligation under the contract. Further, loss in collection of fees in all national highway tolling contracts is compensated. Various issues of the contractor including their dues are being settled through arbitration. For this purpose, conciliation committees have also been formed. These committees consist of Independent Experts (CCIEs) and the claims of the contractors are settled with their payments being released immediately after they are called for conciliation by these experts. Already this year claims worth Rs. 14,248 crore have been settled and discussions are going on settling 59 more cases.