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Farmers stir: Road developers to get ‘force majeure benefits’

P Manoj Mumbai | Updated on July 03, 2021

Allows highway toll operators to seek relief as per model concession agreement or project specific concession agreements

The impact of the ongoing farmers agitation in certain parts of the country has been “considered as indirect political force majeure event” by the National Highways Authority of India (NHAI), allowing build-operate and transfer toll operators to claim relief as stipulated in the model concession agreement for projects post 2009.

For projects where clauses related to force majeure differ from the model concession agreement, respective clauses of project specific concession agreements shall prevail, the NHAI said in a July 2 policy circular on forceful stoppage of toll collection at toll plazas on national highways due to farmers stir on Delhi’s borders.

Indirect political event

The model concession agreement defines indirect political event as “any civil commotion, boycott or political agitation which prevents collection of fee by the concessionaire for an aggregate period exceeding seven days in an accounting year.”

Also read: Apex Court upholds TN Land Acquisition Laws of 2019

A force majeure clause absolves firms from meeting their contractual commitments for reasons beyond their control. The relief available to concessionaires for indirect political force majeure event includes extension of concession period, calculating cost of force majeure such as interest payment on debt, and payment of operation and maintenance expenses.

Published on July 03, 2021

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