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Thursday, July 25, 2024

NHAI Assumes Control of Krishnagiri Toll Plaza from Reliance Due to Defaults

The National Highways Authority of India (NHAI) has decided to take charge of the Krishnagiri toll plaza, prematurely terminating the concessionaire agreement with HK Toll Road Private Limited, a Special Purpose Vehicle (SPV) of Reliance Infrastructure Limited. The administration takeover, effective from January 22, is a result of defaults on payments and maintenance obligations by the concessionaire.

The Krishnagiri toll plaza’s concession period, originally slated from 2011 to 2035, has been cut short by a decade due to the non-compliance of the concessionaire. G. Ramesh, Project Director of NHAI toll plaza, cited payment defaults as the primary reason for the termination. The NHAI has assumed full management and administration responsibilities for the toll plaza.

A former NHAI official disclosed that the defaults included non-payment of premiums and inadequate maintenance of the plaza, prompting the NHAI to step in. The toll plaza’s concession now solely belongs to the NHAI, with no further plans for third-party concessions.

The Krishnagiri toll plaza joins a select group of toll plazas in the state that have been taken over by the NHAI following the mid-term termination of concession agreements.

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