The Bhilwara Jaipur Toll Road Private Ltd., a special vehicle floated by Om Metals Infraprojects, formed for execution of road project has served a termination notice on the concession agreement signed with the Rajasthan government due to material breach of the terms and conditions.
The Bhilwara Jaipur Toll Road (BJTR) , which held 49 per cent stake in a special purpose vehicle (SPV), completed development of 212 km road project of Jaipur-Bhilwara on build, operate and transfer basis in December 2014 with a total project cost of ₹410 crore.
The project is operational since December 2014. From April, the State government has allowed private vehicles to use the highway toll-free even while the company is in discussion with the National Highway Authority of India to convert it into a national highway. It was also in talks with the State government for allowing compensation for loss, on account of exempted vehicles.
In a statement, the company said that as per the termination clause of concession agreement, the Rajasthan government is liable to pay full debt due on the project and 150 per cent of the adjusted equity. The Rajasthan government has to pay 1.5 times of equity, debt and compensation as per the concession agreement. Total claim sought by BJTR is about ₹523 crore, out of which lenders outstanding dues work out to ₹205 crore.
Vikas Kothari, President and Director, Om Metals Infraprojects said that with the termination of the contract, there will be a fresh cash flow and the company will be able to take up more irrigation and hydro mechanical projects.