For the proposal of road projects' premium rescheduling, the National Highways Authority of India (NHAI) has put up a few broad points. First, the proposal neither adversely impacts the net revenue implication for the NHAI over contract period of project, nor results in any “material enhancement” of returns to developers, it has argued.    

NHAI's proposal is simply an attempt to help the developer manage his cash payment better in early years of the contract period to prevent road projects from falling into a liquidity trap.    

The proposal also has stringent conditions for those who seek premium rescheduling. For instance, it says that equity investors will not draw any return on equity for first 12 years and the entire cash flow, after meeting the project requirement and paying off the debt, shall be appropriated first towards payment of premium.    

In most of these projects the NHAI has not been able to meet its obligations within time including land acquisition, environment and forest clearance, and allowing toll collection.    

Even if 21 projects were to be re-bid, NHAI may not get the kind of premiums that developers had offered earlier. Some may offer low premium, while some may actually demand grants.