NHAI urges banks to bail out mired road projects

Written by Timsy Jaipuria | New Delhi | Updated: Jul 5 2014, 06:12am hrs
NHAIThis ARC would be backed by NHAI and unlike other ARCs would also take the execution responsibility to complete the leftover work and bring the project into commercial operations.
The National Highways Authority of India (NHAI) has proposed the creation of an entity on the lines of an asset reconstruction company to bail out distressed lenders and developers, reports Timsy Jaipuria in New Delhi. According to a communication from NHAI chairman RP Singh to Indian Banks Association chairman KR Kamath, the proposed entity can buy out the project from distressed lenders, complete it and disinvest the same in the market. NHAI has said that it can subscribe to the seed money, but the operation would be effective if commercial banks, IDFC, etc are also roped in and take a stake in such a company. This ARC would be backed by NHAI and unlike other ARCs would also take the execution responsibility to complete the leftover work and bring the project into commercial operations.

Facing deal