The National Highways Authority of India (NHAI) has prematurely shut down the concessionaire of Krishnagiri toll plaza and taken over its administration starting January 22.
The move to shut down the concessionaire comes over defaults on the part of the concessionaire. Speaking to The Hindu, G. Ramesh, Project Director of NHAI toll plaza said, there were defaults in the payments causing the termination. The concession period for the toll plaza was from 2011-2035. However, on Monday, the management of the toll plaza was taken over completely by the NHAI, a full decade before its completion. “It came into effect from January 22,” Mr.Ramesh said.
The concession to the toll plaza was owned by HK Toll Road Private Limited, a SPV (Special Purpose Vehicle) of Reliance Infrastructure Limited. According to a former NHAI official, here were defaults in payments of premiums, maintenance of the plaza among other complaints. So, the NHAI took over the management and administration. “The concession belongs to the NHAI and there will be no further concession to third party,” the official said.
Krishnagiri toll plaza is among the few toll plazas in the State that have been taken over by the NHAI after termination of the concession agreement midway.
