Covid-19 restrictions take a toll on Noida Toll Bridge

The company’s performance in the advertisement income and the rental income was impacted owing to the lockdown Period and consequential waivers.

Sep 10, 2020 03:09 IST India Infoline News Service

Noida Toll Bridge Company
Noida Toll Bridge Company Limited informed the exchanges Thursday that the complete nationwide lockdown due to Covid-19 crisis was initially imposed from March 25, 2020, till May 31, 2020. Subsequently, orders have been issued for re-opening of limited activities in a calibrated manner in areas outside containment zones and lockdown in containment zones has been extended from time to time.

The continuance of the Government Orders has resulted in the prohibition of the presence of the public in public places, there was no public display of any advertisements occurring. Accordingly, the performance in the Advertisement Income and the Rental Income was impacted owing to the lockdown Period and consequential waivers.

The company has attempted to leverage this crisis, accordingly, the company had written to all concerned authorities (SDMC, EDMC, NOIDA) for remission and deferment in license fees and revenue share like many other parties and the concerned authorities were understood to be considering giving relief to licensees but a final response was awaited.

“The Hon’ble High Court of Allahabad had, vide its Judgement dated October 26, 2016, on a Public Interest Litigation (challenging the validity of the Concession Agreement and seeking the Concession Agreement to be quashed) has directed the Company to stop collecting the user fee holding the two specific provisions relating to levy and collection of fee to be inoperative but refused to quash the Concession Agreement.

Consequently, collection of user fee from the users of the Noida-Delhi Toll Road has been suspended from October 26, 2016, pursuant to which an appeal has been filed before the Hon’ble Supreme Court of India, seeking an interim stay on the said Judgement the SLP is still pending for final adjudication,” company said.

Noida Toll Bridge Company Ltd is currently trading at Rs3.29 down by Rs0.02 or 0.6% from its previous closing of Rs3.31 on the BSE.

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