Taking note of a three road developers' inability to furnish Performance Bank Guarantee (PBG), the National Highways Authority of India (NHAI) board on August 23 considered termination of the three road projects. NHAI said that the board considered three projects for termination due to the inability of developers to furnish IMG. There were seven more projects, which are not moving, in the list. These projects were left out now, NHAI said.
A PBG should be deposited by every road developer within 90 days of the agreement being signed. PBG amounts to 5 per cent of the total project cost of a particular project and is valid till nine months after the project starts commercial operation. Any delay in the completion of project would mean that the developer would not get the money back and would be forfeited by NHAI.