Compensate loss due to Kherki toll exemption to locals: E-way operator
The NHAI and the consortium of banks that operate the expressway will discuss the potential revenue loss due to the shifting at a meeting on WednesdayUpdated: Aug 29, 2017 23:26 IST
The Millennium City Expressway Limited (MCEPL) has written to the Haryana government to compensate loss of toll exemption to the locals of the 31 villages located around Kherki Daula. The major stakeholder of the 27.7km Delhi-Gurgaon Expressway between Rao Tula Ram (RTR) and Kherki Daula Toll is a consortium of five banks which operate the expressway through special purpose vehicle (SPV) such as MCEPL.
The toll is likely to be shifted a further 11km from the present location to Sehrawan, Panchgaon, which is a low potential zone from revenue generating point.
The National Highways Authority of India (NHAI) and the bankers are likely to discuss the revenue loss on Wednesday.
“The MCEPL has exempted as many as 12000 locals of 31 villages located around the Kherki from toll payment. This amounts to a significant loss of revenue daily. The state government has to compensate for the loss as per the agreement and this will come up in discussion with the NHAI. We have, however, briefed the Haryana government through the district administration, in this regard,” said S Raghuraman, chief executive officer (CEO), MCEPL.
“Now that the toll is to be shifted to a low potential location, revenue loss is likely to be doubled. This is a big worry for the concessionaire. The loss due to toll exemption to locals amounts roughly to ₹100 crore,” said the CEO MCEPL, adding that other likely losses at the new low potential location is being evaluated and will be put before the committee.
The committee, which was formed after a meeting on August 23 chaired by NHAI project director (PD) Ashok Sharma, will discuss the toll’s potential revenue loss for the first time on Wednesday.
“NHAI has formed a committee to assess and address grievances of the toll operator and the members are meeting to discuss the issue,” the PD said.
Led by the Infrastructure Development Finance Company (IDFC), the consortium also comprises the State Bank of India (SBI), Punjab National Bank (PNB), Oriental Bank of Commerce (OBC) and Bank of India (BOI).
First Published: Aug 29, 2017 23:26 IST