States seek stamp duty waiver

States demand stamp duty waived on road projects to avoid delays and disputes.

“Some states don't want to let go of this easy and substantial chunk of revenue and hence raising demands from concessionaires, which could lead to several disputes and delay in projects”

Uttar Pradesh demands 12% stamp duty

Uttar Pradesh wants 12% stamp duty for toll-operate-transfer projects.

Central government opposes state levies

Central government says state stamp duties create contractual ambiguity and disrupt financial models.

“A state-level levy on contracts that channel revenues entirely to the central government becomes a circular fiscal transfer with no substantive value addition and only increases complexity within concession agreement”

Risk of project delays

State stamp duties risk delays in highway projects and financial closure.

“This will result in a great degree of uncertainty for long-term public-private-partner projects in the national highway sector”