West Asia crisis: National Highways Builders Federation seeks 3-month extension of road relief measures
NHBF has sought a three-month extension of relief measures until December, citing continued West Asia crisis-related volatility in fuel, logistics, supply chains and costs that is straining road projects.
New Delhi - The National Highways Builders Federation (NHBF) has requested a three-month extension of relief measures beyond September 30 to aid road concessionaires grappling with financial strain due to the ongoing West Asia crisis. The geopolitical instability in the region continues to impact supply chains, leading to volatile crude oil prices, increased fuel costs, and heightened transportation and logistics expenses.
These factors have contributed to abnormal financial and operational pressures for contractors and concessionaires, which are outside their reasonable control, according to the NHBF.
The association has urged the government to prolong the applicability of the relief measures until December or until the abnormal market conditions stabilize. Discontinuation of the relief measures on September 30, while circumstances remain unchanged, could result in significant financial stress on ongoing projects. This could adversely affect project cash flows, execution, and lead to avoidable claims, disputes, and delays, the NHBF warned.
The federation emphasizes that the extended relief period would provide contractors and concessionaires with necessary certainty to continue executing projects amidst the prevailing uncertainty. It would also help ensure the financial viability of ongoing contracts, minimize avoidable contractual disputes, and facilitate the timely completion of critical National Highway projects.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
