Agreementon Concession:A concession agreement was agreed between NTBCL, NOIDA andIL&FS on November 12, 1997. According to the terms and conditions of the agreement,the NTBCL has the right to BOOT (Build, Own, Operate and Transfer) the TollBridge connecting Delhi and Noida and other project facilities.

If we are ableto recover the total cost of the project with returns of 20% then theconcession period is 30 years or even earlier depending on the returns. NTBCLcan use the net toll revenues after setting aside expenses for maintenance andoperating activities to pay debt. However, NTBCL lenders cannot have access toassets or income of IL&FS, Noida or Administration of Delhi.  Distinctive Features of Concession Agreement include:1.CostRecovery through Toll Fees:NTBCL has the right to recover project costs, operating costsand maintenance costs by charging Toll Fees over the concession period2.FeeReview Mechanism:FRC – Fee Review Committee will be formed, the chairman ofwhich would be Concessionaire appointed by the representative members of NOIDAwho are part of FRC.

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FRC decides the fee based on the CPI data for urbannon-manual employees which would be revised every year on Feb 1st. Tollrate will be calculated on %increase in CPI and then rounded off to next rupeefor class I and class II vehicles else it will be rounded off to next 5 rupees. 3.Assured returns:As per the concession agreement, the NTBCL has the right to receiveassured returns of 20% net of taxes which is calculated on the total capital inINR. Independent Project Engineer and Independent Auditor calculates the totalcapital employed by taking project costs, major repair costs and shortfall in retrievalof assured returns in the previous year (if any). In Case, if the assuredreturns are not achieved then the concession period can be extended to a maximumof 2 years beyond the agreed period of 30 years. Additionally, NOIDA has thepreference to grant land developmental rights to fund revenue shortfalls (ifany) to solace 20% assured returns.

Once the target is achieved, projectfacilities will return to NOIDA for a Rs.1/- nominal value