The National Highways Authority of India (NHAI) has taken over the administration of the Krishnagiri toll plaza, shutting down the concessionaire, HK Toll Road Private Limited, a Special Purpose Vehicle (SPV) of Reliance Infrastructure Limited. The takeover was initiated on January 22 due to defaults on the part of the concessionaire, leading to the premature termination of the concession agreement.
The Krishnagiri toll plaza had a concession period from 2011 to 2035, but the NHAI decided to assume control a decade before the completion of the agreement. G. Ramesh, Project Director of NHAI toll plaza, cited defaults in payments as the primary reason for the termination. The NHAI has expressed concerns about premiums, maintenance of the plaza, and other issues.
The management and administration of the toll plaza are now entirely in the hands of the NHAI, with no further concession to third parties. This move marks Krishnagiri toll plaza as one of the few toll plazas in the state that has been taken over by the NHAI mid-concession period. The decision is aimed at addressing the reported defaults and ensuring effective operation and management of the toll plaza.