Question : SHARING OF RISK INCURRED IN HIGHWAY PROJECTS



(a) whether the road developers have recently urged the Government to share the risk and/or loss associated with the development of highway projects;and

(b) if so, the details thereof and the action taken by the Government on the proposals?

Answer given by the minister


MINISTER OF THE STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS (SHRI R.P.N. SINGH)

(a)to (b) Sharing of risks in development of highways undertaken on Public Private Partnership basis is governed in accordance with the framework of Concession Agreement. Highway developers have inter alia raised the issue of factoring in measures to offset high input cost fluctuation which, however,is required to be anticipated and built in by the concessionaire in his bid for PPP projects.