New Delhi, May 23 -- The government is putting in place a stricter, more transparent framework for harmonious substitution of highway concessionaires amid concerns that developers were using proxies to retain control and lenders were exercising excessive discretion, two people aware of the development said.

The revised framework, being incorporated into the new model concession agreement (MCA) for build-operate-transfer (BoT) toll projects, empowers the government to replace developers facing prolonged delays in projects or liquidity stress while laying down clear eligibility criteria for new concessionaires and step-by-step procedures for such substitution, the persons cited earlier said on the condition of anonymity.

Harmonious substi...