Toll Operators Yet To Get Compensation For Demonetisation Loss

• Posted in Infrastructure
• on February 21, 2017
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For 23 days after the prime minister announced the demonetisation exercise on November 8, toll collection remained suspended across the country. It has been two months since collections resumed but operators are yet to be compensated for their losses as promised by the government.
“No, we haven’t received anything yet. Whatever we have lost (during demonetisation), has to be compensated. The fight is still on,” said Isaac George, director and CFO, GVK Power and Infrastructure Ltd. that runs the Jaipur-Kishangarh and Deoli-Kota expressways in Rajasthan
The Ministry of Roads, Transport, and Highways and the National Highways Authority of India (NHAI) had decided to make the national highways toll-free to give relief to commuters facing cash crunch after the note ban.
The government had then decided that the toll concessionaires would be reimbursed up to 75 percent of the total loss in collection.
Vinayak Chatterjee, chairman, Feedback Infra, an infrastructure services provider, also tweeted that toll companies are yet to get compensation. Feedback Infra advises infrastructure companies like Larsen & Toubro, Indian Railways and Metro Rail.
MEP Infrastructure & Developers Ltd., which operates 25 toll plazas across seven states, including all five entry points into Mumbai, has claimed about Rs 48 crore but hasn’t received anything, the company said in an email.
IRB Infrastructure Developers Ltd., which runs the Mumbai-Pune Expressway, has claimed Rs 150 crore as toll revenue loss due to demonetisation, the company had said in a post-earnings conference call with analysts.
Virendra Mhaiskar, chairman and managing director of the company, had said that the NHAI would reimburse interest expense and operation and maintenance revenue loss in cash. The profit and principal amount repayment would be compensated by extending the concession period, he had said.
Mhaiskar had said the company would receive full cash reimbursement from the Maharashtra government as part of the concession agreement.
When contacted by BloombergQuint, IRB Infrastructure refused to comment on the story.
GVK Power and Infrastructure Ltd., however, wants full compensation in cash. The company has claimed about Rs 22.5 crore as total revenue loss during the demonetisation period.
Issac George said the government has gone back on its word and has agreed to pay only the operation and maintenance costs instead of the total revenue loss.
GVK Power wants more clarity from the government on the compensation, George added. Korbinian Holzer Authentic Jersey

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