Maharashtra toll operators to get Rs 142 cr for losses during note-ban

The government has carried out a series of reforms to increase the participation of mid-sized EPC players in the tendering process of construction contracts, Ind-Ra said.

The Maharashtra cabinet today gave its approval to pay compensation to the tune of Rs 142 crore to the toll operators in the state for the losses they suffered during the demonetisation period last year.

"During the demonetisation, we had asked the toll operators to stop collecting toll as there was shortage of cash with public. We had also committed to compensate them for their losses, which we are now doing," state finance minister Sudhir Mungantiwar told PTI.

He added that the money will be recovered from the Public Works Department's (PWD) budgetary outlay for the current financial year.

The toll booths - 14 operated by the PWD department and 27 others by the Maharashtra State Road Development Corporation (MSRDC), were shut between November 9 and November 30 last year to avoid inconveniencing people who were short of cash after demonetisation.

Toll booths at five Mumbai entry points, the Bandra-Worli Sealink and Mumbai-Pune Expressway were also shut.

As per the contract between the National Highways Authority of India (NHAI) and the private concessionaires or any other toll-collecting agencies, the companies have to be paid compensation in such cases. The compensation can either be monetary or paid via the extension of concession duration.