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<p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Hopes of an amicable settlement between the National Highways Authority of India and IDFC and senior lenders of the Delhi-Gurgaon Expressway project brightened on Monday with the NHAI counsel telling the Delhi High Court that a May 2013 proposal by IDFC, seeking the right to replace the current developer, DS Constructions, could be considered.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">&ldquo;The proposal submitted by IDFC and Delhi Gurgaon Super Connectivity Limited (DGSCL) on January 10 is incomplete and does not incorporate all the necessary factors. In order for the settlement to go through, there is a need that IDFC and the concessionaire should confirm to the earlier proposal of 02.05.2013,&rdquo; senior counsel Sandeep Sethi, appearing on behalf of NHAI, told the court.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The court on Monday asked the lenders to state their stand (with respect to NHAI&rsquo;s views) on January 27. When contacted, NHAI officials, said any proposal from the lender has to be discussed at its board and in the roads ministry before taking a final call.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">If IDFC&rsquo;s May 2013 proposal gets accepted then all the legal and arbitration claims against the operator, Delhi-Gurgaon Super Connectivity, the lenders and the highway authority raised against each other will be considered as fully and finally settled.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">As per the IDFC proposal, the toll plazas at 24 Km and 42 Km will continue to operate and a new plaza, at 61 Km, will give a right to the new operator to collect the toll at escalated prices based on the wholesale price index every year with effect from April 1 each year. Also, NHAI will have to adjust toll rates for the current fiscal to the escrow account, which has been due since the last two years, leading to commuters paying a fresh toll at 61 Km as per the current rate structure.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The lenders will also have to appoint a new operator to run the operations and management of the toll plaza, substituting DGSCL with the consent of the highway ministry and the NHAI board. IDFC had also said that NHAI&rsquo;s liability would remain unchanged and would not be increased in any manner. On January 10, the lenders consortium led by IDFC and the developer expressed their intention to exit the project and hand over the toll plaza to the government.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">In case the substitution happens, then the new operator will take over along with all the other concessions and liabilities with respect to NHAI and the lenders, except the dues arising prior to the appointment of IDFC consortium as a receiver of the project. The understanding between DGSCL and IDFC comes at a time when both NHAI and the highway ministry have refused to entertain any charges being raised by the developer and lenders.</span></span></span></p> <p style="text-align:justify"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Source-On Request</span></span></span></p>