New highway framework targets proxy control, delays

The government is putting in place a stricter, more transparent framework for harmonious substitution of highway concessionaires amid concerns that developers were using proxies to retain control and lenders were exercising excessive discretion, two people aware of the development said.

- Subhash Narayan

The revised framework, being incorporated into the new model concession agreement (MCA) for build-operate-transfer (BoT) toll projects, empowers the government to replace developers facing project delays or liquidity stress while setting clear eligibility criteria for new concessionaires and step-by-step procedures for such substitution, the persons cited earlier said on the condition of anonymity.