NHAI expects dip in bid premia on reamining contracts this year

New Delhi : New Delhi 29 Aug 11 | 12:05 AM:After successfully awarding one project after another at a premium rate in the first few months of the financial year, the National Highways Authority of India (NHAI) says it does not expect this to continue to the same extent during the next phase of award of contracts.

Companies bidding for road projects are prepared to offer a premium in the form of an annual payment to the government over a period of time if they are confident of collecting enough toll revenue to do so, based on traffic estimates

In the coming months, NHAI plans to award all the 25 remaining projects under phase-IV of the National Highways Development Programme during the current financial year. “We do not expect the same amount of premium in the coming months because the next phase of awards are for two-lane roads (about 20,000 km) with paved shoulders. These projects will not attract the same kind of interest like the ones awarded earlier," said a senior NHAI official, who did not want to be identified.