NHAI approves IDFC buyout of Gurgaon expressway developer
Timsy Jaipuria: New Delhi, Jan 31 2013, 04:11 IST
out 74% of the equity held by DSC but we asked them to buy out the entire 100%,” an official said.
In February 2012, NHAI had sent a termination notice to DSC alleging operational incompetence and raising loans worth R1,275 crore from IDFC without prior approval from the authority. DSC had then moved the Delhi High Court challenging the NHAI's move. A court-initiated settlement was reached between the two under which DSC was required to construct more toll plazas along the expressway to ease traffic but NHAI remained sceptical of the developer’s ability to run the project.
Once the 100% rights go to IDFC, the financial institution will be collecting toll till 2023 to recoup the funds. For NHAI, salvaging the project is crucial in sustaining investor interest in public-private partnership projects in the sector.
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