HTT/Phone 91-11-25074100/25074200

Fax:91-11-25093507 25093514
977
NHAL National Highways Authority of India
(Ministry of Road Transport and Highways)
ot-5 a 6, dT-10, aTI, T Rret-110075
G-5&6, Sector-10, Dwarka, New Delhi-110075

NHAI/Policy Guidelines/Payment Related/2021

2021
Policy Guidelines No. 9.3.19/2021 dated 23rd February,
(Decision taken on e-file Comp. No.35428)

Sub: Clarification to the Bank Rate mentioned in Cl. 19.2.1 of Standard EPC

Agreement for National Highways and centrally sponsored Road & Bridge
works proposed to be implemented on Engineering, Procurement &
Construction (EPC) Mode reg.

It has been observed that PlIUs are following different methodology for
the recovery of interest on mobilisation advance. Some PIU's are using bank
rate prevalent at the time of drawl of advance while others are using bank
rate applicable from time to time until the recovery of complete advance.

In this regard, Ministry of Road Transport & Highways vide letter no.
2.
RW/NH-37010/4/2010/PIC-EAP (Printing) dated 29th August, 2017 (Copy
enclosed) has issued a clarification on Cl. 19.2.1 of Standard EPC Agreement
regarding computation of interest in such cases with a typical example.

3. In view of above it is hereby clarified that flexible interest rate i.e Bank
rate is to be used for calculation of interest from the date of payment of
mobilization advance till the recovery of the same, as given in above letter
of MoRTH.

4. This issues with the approval of Competent Authority.

23.02.»2
(Sheo Shankar Jha)
Chief General Manager (Coord.)

To
All officers & staff of NHAI HQ/ROs/PIUs/CMUs/Site Offices

Copy to:
1. PS to Chairman
2. PS to All Members/CVO
3. Hindi Officer for translation in Hindi
4. Library for hosting the circular on library site
5. Web admin for circulation
 Government of India
Ministry of Road Transport & Highways
(EAP Zono)
Transport Bhawan
1, Parliament Street
New Delhi-110 001

No.RW/NH-37010/4/2010/PIC-EAP(Printing) Dated the 29t August, 2017

To

1. - The Principal Secretaries/Secretaries of all States/UTs Public Works Department dealing

with National Highways, other Centrally Sponsored Schemes & State Schemess
2. The Engineers-in-Chief and Chief Engineers of all States/UTs Public Works Department
dealing with National Highways, other Centrally Sponsored Schemes &State Schemes.
3. Director General (Border Roads), Seema Sadak Bhawan, Ring Road, New Delhi-110010
4. The Chairman, National Highways Authority of India (NHAI), G-5&6, Sector-10. Dwarka,
New Delhi-110 075.
5.
The Managing Director, National Highway Infrastructure Development Corporation
3 floor, PTI Building. Parliament Street, New Delhi-110 001
Ltd

Subject Clarifications to the Bank Rate mentioned in CI. 19.2.1 of Standard EPC
Agreement for National Highways and centrally sponsored Road & Bridge Works
proposed to be implemented on Engineering, Procurement & Construction (EPC) mode-
'Reg.

SR
As per Cl 19.2.1 of the Standard EPC Agreement "The Advance Payment for
mobilization expenses and for acquisition of key new construction equipmenl would be deemed
as interest bearing advance at Bank Rate, to be compounded annually. The interest would be
recovered along with the recovery of mobilization Advance Paymert in equal mstallments as
per provision laid down for the mobilization advance recovery."

be BankasRate
2. treated is declared
a fixed Interest by the on
Rate Reserve Bank ofPayment.
the Advance India (RBI)Therefore.
from time the
to time and cannot
interest portion

from the date of payment of Advance Payment till recovery of the same may be calculated
considering the flexible interest rate i.e. Bank Rate to be compounded annually To avoid any
doubt, a typical example for interest rate to be charged on Advance recovery has been
elaborated below:

(i) Date of release of advance payment: 15.04.2016

(i) Prevailing Bank Rate as on 15.04.2016 is 7.00 %
(i) Bank Rate changed on 04.10.2016 to 6.75 %
(iv) Interest on Advance Payment for period between 15 04 2016 and 03.10 2016 is
calculated using interest rate of 7.00% Compounded annually
 (v) Bank Rate changed on 06.04.2017 to 6.50%.
(vi) Interest on Advance Payment for period between 04.10.2016 and 05.04.2017 is
calculated using interest rate of 6.75% compounded annually
(vi) Similar process is continued till complete recovery of Advance Payment

3. The contents of this circular may be brought to the notice of all the concerned for
immediate compliance.

4 This issues with approval of Competent Authority.

Yours htul
(Khushal Chand)
Superintending Engineer (EAP)
Copy To:
1. All Technical Officers at the Headquarters
2. Secretary General, Indian Roads Congress
3. Director, IAHE, NOIDA
4 All ROs and ELOs of MoRT&H.

Copy for information to:

1. PPS to Secretary (RT&H), PPS to DG(RD) & SS, PS to AS&FA, PS to JS(EAP), PS to

ADG (IC).
2. NIC-with the request to upload in the Ministry's portal

(Khusnal Chand)
Superintend1ng Engineer (EAP)