Obligations of Concessionaire and nhai

Key Obligations of NHAI

• NHAI was responsible for undertaking land acquisition and providing the Right of Way (RoW) to the Concessionaire free from all encumbrances. A notional concession fee of ` 1/- was to be paid annually by the Concessionaire to NHAI.

• During the development period, NHAI undertook the operation and maintenance of the existing highway at its own cost.

• The shifting of utilities and related expenses was the responsibility of NHAI.

• NHAI was also required to have necessary environmental clearances, permits etc. granted to the Concessionaire.

• A loan facility, in case of the revenue falling short of subsistence revenue level, was made available by NHAI at the State Bank of India Prime Lending Rate. Such a loan could also be provided by NHAI to cover a shortfall in meeting debt service payments.

Key Obligations of the Concessionaire

• The Concessionaire was required to comply with the all the requirements needed for clearances, approvals, permits etc. from various government agencies.

• The Concessionaire was obliged to enter into a state support agreement with NHAI, the Government of National Capital Territory of Delhi (GoNCTD) and Government of Haryana (GoH).

• A performance security was to be paid by the Concessionaire on or before the date of the Agreement for its due and faithful obligation during the Construction Period.

• To allow recovery of investment and to earn a suitable return, the Concessionaire is entitled to collect toll from the users of the expressway during the operation period. The toll is notified by the MoRTH and there is an annual revision linked to the extent of variation in the WPI. The toll has to be shared with NHAI if more than 130,000 PCUs are tolled on the expressway.

• At the end of the concession tenure, the expressway shall be transferred back to the Government.

Exit Strategy

The concession period is for 20 years and the projected end date is 11 January 2023 when the expressway will be handed over to the government.

Case Study 3: Mumbai Metro

Introduction

To address both present and future public transportation needs, the Government of Maharashtra (GOM) through the Mumbai Metropolitan Region Development Authority (MMRDA) has planned a 146 kilometre long rail based Mass Rapid Transit System (MRTS) for Mumbai. This project is the first corridor of the proposed MRTS. The Versova Andheri Ghatkopar line shall be an elevated line with a route length of 11 kms, with 12 stations and a car depot situated at D.N. Nagar. The line will have a minimum curvature of 100 meters and minimum ground clearance of 5.5 meters. The length and width of the coaches that shall ply on the route will be 22 metres and 3.2 metres, respectively. Other technical features of the project include 25 KV AC overhead equipment, cab signalling with automatic train protection, and a maximum speed of 80 kmph with an average speed of 33 kmph. Mumbai Metro One is going to run on a dedicated elevated corridor and shall have high levels of comfort for the passengers viz. fully air-conditioned world class coaches, provision for lifts and escalators at stations, modern automatic fare collection system and high levels of passenger security systems. The existing sub-urban trains connect the northern and southern parts of the city. This project will provide East-West rail based connectivity to Central and Western suburbs. The total time taken for the journey from Versova to Ghatkopar would be approximately 21 minutes, as against a typical time taken of 90 minutes by other modes of transport.