India Eases Highway Payment Norms for Developers
Key Highlights
India relaxes payment norms for highway developers, ensuring stable cash flows amidst rising costs. Policy change supports infrastructure development and project execution.
The Indian government has relaxed payment norms for highway developers, a move aimed at stabilizing cash flows for companies grappling with higher input and logistics costs. The revised policy, reported by Economictimes.indiatimes.com, will see payments typically released on a milestone or pro-rata basis under EPC (Engineering, Procurement, and Construction) and HAM (Hybrid Annuity Mode) contracts now disbursed monthly for work meeting quality standards.
This adjustment is designed to provide more consistent revenue streams for developers, addressing challenges posed by increased operational expenses. Price adjustments and escalation dues will also be settled alongside these regular payments, further easing financial pressures on highway construction firms.
The decision reflects the government’s focus on sustaining momentum in infrastructure development by ensuring the financial health of key players in the sector. The policy change is expected to facilitate smoother project execution and attract continued investment in India’s highway infrastructure.