Cabinet likely to amend Road Min’s MCA
agreement
01/09/2014 07:16
The Cabinet may likely to take up the Road Ministry's proposal in which highway developers are allowed to exit projects immediately after completion of their projects with lenders' approval without attracting any penalty, as per ET report. According to the current clause of MCA, road developers can exit projects only two years after beginning of commercial operations. For projects awarded before 2009, developers at no point of time can exit projects fully. A Road Ministry official said the proposal seeks to allow highway developers to exit under the clause of Substitution (Agreement) in the Model Concessionaire Agreement (MCA). He added that this will help a developer, which is good in executing the project but may not possess operational expertise, to exit contract once the work is completed. The proposal has been moved for the approval of the Cabinet and the proposed amendment will be applicable to future projects and the contracts which have been completed so far, he said. Further, the developer could be replaced by another firm which will be chosen by lenders to operate the project, the official said.
01/09/2014 07:16
The Cabinet may likely to take up the Road Ministry's proposal in which highway developers are allowed to exit projects immediately after completion of their projects with lenders' approval without attracting any penalty, as per ET report. According to the current clause of MCA, road developers can exit projects only two years after beginning of commercial operations. For projects awarded before 2009, developers at no point of time can exit projects fully. A Road Ministry official said the proposal seeks to allow highway developers to exit under the clause of Substitution (Agreement) in the Model Concessionaire Agreement (MCA). He added that this will help a developer, which is good in executing the project but may not possess operational expertise, to exit contract once the work is completed. The proposal has been moved for the approval of the Cabinet and the proposed amendment will be applicable to future projects and the contracts which have been completed so far, he said. Further, the developer could be replaced by another firm which will be chosen by lenders to operate the project, the official said.
