Page 39 - TrafficInfraTech Magazine - Linking People Places & Progres

INFRASTRUCTURE

Operations face serious issue relief for non MCA based Concession Measures from
with regards to cash shortfall to Agreements be similar to MCA based RBI with regard
service debt. The current situation Concession Agreements.
seems to have impacted certainly COVID-19, while being a serious to moratorium is
the profitability of current year but peril also provides several attractions
perhaps of next year as well seriously for road construction, operating and a much needed
impacting valuation the road assets. support. Also,
investing communities.
NHAI offers COVID-19 Relief NHAI’s offer of
Measure equivalent to Non Political Minister for Road, Transport
Force Majeure under MCA based and Highways is taking initiative to Revenue Shortfall
Concession Agreements. While complete road works and initiate new Loan will offer
industry was expecting Political Force alignments as a part of kick-starting
Majeure at least for the suspension the economy. Accordingly, significant sustenance to the
period from March 26 to April 20, number of EPC and HAM packages
2020, provision of minimum extension are expected to be announced in sector. Modification
of three months is a welcome relief. coming days. This is also aided by the to some provisions
Industry is also trying to seek that fact that (a) Bitumen is available at a
low price, (b) banks have considerable in financing
cash and would be willing to provide
working capital facilities, (c) Steel documents by
and cement is abundantly available NHAI shall result in
and at reasonable prices and (d)
Construction equipment is available seem-less adoption
at low hire rates, even if, manpower of RBI package by
availability may be a concern in some
regions of the country. Accordingly, the industry.
work on some of the EPC packages
has started in right earnest.

Even before the current crisis, most
projects had reached an ETC penetration mergers and acquisitions and many
of about 60%. Post resumption of of the closures were expected to take
tolling most plazas are witnessing ETC place in 2020. These closures while
penetration of around 70% primarily delayed will eventually happen as
because during lockdown period most also many investment options in road
traffic traversing the roads is commercial sector will emerge during the year
traffic. However, it is very likely that car 2021 by way of M&A as well as by
owners will quickly buy the Fastag once asset monetization programme such as
the lockdown conditions are lifted. Also, Toll Operate Transfer (TOT). Even BOT
several options of mobile based tolling (Toll) may re-emerge both because of
are under development which may the need to the government as well as
not require RFID interface and ease private sector in 2021 or 2022.
movement to free flow even further. According to Neeraj Sanghi, xxxxxx,
Converting to electronic toll collection once we are able to go through the
will further help maintaining social current tough times, we could expect a
distancing.
turn-around for the road infrastructure
2019 was a great year for road sector in the coming years.

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