Highways Ministry releases Rs 10k cr for developers to expedite work
New Delhi: The government on Wednesday said it has released over Rs 10,000 crore to developers amid COVID-19 to boost the 'Atmanirbhar Bharat' scheme and expedite highways construction. Another sum of Rs 2,475 crore is under process to be released, it said.
"A sum of Rs 10,339 crore has been released by the Ministry of Road Transport and Highways (MoRTH) during the COVID-19 period
under the simplified payment process as envisaged in the ambitious Atmanirbhar Bharat scheme.
Another sum of Rs 2,475 crore is being processed and is likely to be released soon," the ministry said in a statement.
The government has taken various steps to ensure not only ease of doing business but also to boost stakeholder confidence in building quality road infrastructure in the country, the statement added.
The Ministry of Road Transport and Highways has simplified the payment process under the Atmanirbhar Bharat scheme, and contractors' payments are being made every month instead of Milestone achievement basis.
This has been proved extremely beneficial towards timely completion of National Highway projects in the country, The Ministry of Road Transport and Highways said.
The government said it has extended a number of relief packages for its contractors and concessionaires owing to COVID-19 scenario.
"Retention money (which is a part of the Performance Security till construction period) is being released in proportion to the work already executed in accordance with the Contract specification, and retention money for up to six months' period is not deducted from the Bills raised by the Contractor," the statement said.
For HAM (hybrid, annuity mode)/ BOT (build, operate, transfer) contracts, performance guarantee is released on pro-rata basis, it said, adding out of total 1,253 applications under 1,155 projects for this relief, Rs 3,527 crore has been released, while over Rs 189 crore is under process.
The extension is being given to contractors/concessionaires for meeting their obligation under the contract for up to six months, depending on site conditions.
Out of total 207 applications under 196 projects for this relief, Rs 34 crore has been released, while Rs 15 crore is under process.