Clearances need to come in time-bound manner
We have seen two recent incidents of large road projects coming under stress. How big a blow does it deal to infrastructure investments in the country?
In the last year or two, we have certainly seen aggression in bidding that has had its own impact. It's not that things have changed very dramatically over the last two months. I am not aware of a single project where all the clearances which NHAI (the National Highway Authority of India) was supposed to give, have come in real good time. Now, what is happening is that these (the NHAI projects by GMR, GVK) being large projects, the cost escalation impact is to the developers' credit. Any inordinate delay is going to take his cost up and then certainly, banks have become more jittery. So, naturally, if the clearances have not come through in a reasonable time frame, people do not want to stay with it.
In this case, the viability of those projects was said to be an issue...
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