NHAI nod for stressed assets ARC

Written by Timsy Jaipuria | New Delhi | Updated: Aug 22 2014, 06:04am hrs
The board of the National Highways Authority of India (NHAI) on Thursday approved a proposal to set up an asset reconstruction company (ARC) to revive stressed projects, reports Timsy Jaipuria in New Delhi. NHAI chairman RP Singh told FE that an asset management company (AMC) will be formed in which NHAI will have a 25% stake with the remaining 75% being offered to financial institutions. A strategy for the ARC will be drawn up to decide how the assets will be taken over, Singh said, adding that NHAI was slated to have detailed discussions with the Indian Banks Association (IBA) soon. The corpus for the ARC, the NHAI chairman said, had not been decided.