“The geopolitical situation in West Asia remains uncertain, with continued volatility in crude oil prices, fuel costs, transportation and logistics expenses, and supply chains,” NHBF said in its request to the ministry of road transport and highways.
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ET has seen a copy of the request made to the ministry.
“Consequently, contractors and concessionaires continue to face abnormal financial and operational pressures which are beyond their reasonable control,” it added. The association requested the government extend the applicability of the relief measures for a further three months, until December end, or until the prevailing abnormal market conditions substantially stabilise.
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NHBF argued that the discontinuation of the existing relief measures with effect from 30.09.2026, while the underlying circumstances continue to remain substantially unchanged, may result in significant financial stress on ongoing projects.”This could adversely affect project cash flows and execution, particularly for projects already operating under constrained margins, and may also give rise to avoidable claims, disputes and delays,” it said.
NHBF said the latitude would provide the necessary certainty to contractors and concessionaires to continue executing projects through a period of uncertainty.
“It would also help the financial viability of ongoing contracts, minimise avoidable contractual disputes and facilitate timely completion of critical National Highway projects,” it added.