Sadbhav Engineering has received approval from National Highway Authority of India (NHAI) for the proposal of deferment of premium for two of its projects. These projects are Hyderabad- Yadgiri 4 Laning, undertaken by Hyderabad Yadgiri Tollway Private Lmited- SPV and a step-down subsidiary of the company and Rothak- Panipat 4 Laning, undertaken by Rothak Panipat Tollway Private Lmited- SPV and a step-down subsidiary of the company.
The deferment of premium shall span over the period from 2014-15 till 2026-27. This step would give huge comfort to the lenders as debt obligation would now get priority over the premium payable to NHAI.
NHAI would be able to recover the deferred premium with interest in the latter period of the concession. The deferment shall be limited to the actual revenue shortfall after meeting the debt obligation and operation expenditure.
Sadbhav Engineering is one of the largest BOT developers in the road sector in India with good project execution skills. SEL operates in the four distinct business areas in the infrastructure sector viz. BOT road projects, cash contract-based road projects, irrigation projects and mining.