Nitin Gadkari-led Ministry of Road Transport & Highway today highlighted the various steps taken by it to complete major pending projects of the NHAI (National Highways Authority of India).
Nitin Gadkari-led Ministry of Road Transport & Highway today highlighted the various steps taken by it to complete major pending projects of the NHAI (National Highways Authority of India). The steps include revamped Disputes Resolution Mechanism, streamlining of land acquisition and regulatory clearances and close coordination with other ministries.
According to the Ministry, 112 projects of the the NHAI have been delayed due to reasons such as poor performance of contractors, public agitation, land acquisition, utility shifting, delay in statutory clearances, non-availability of soil or aggregates. This information was given by MoS for Road Transport and Highways Munsukh L. Mandaviya in written reply to a question in Rajya Sabha. “Government has permitted one time fund infusion to revive and physically complete languishing national highway projects under Public-Private Partnership (PPP) mode and also allowed Rationalised Compensation to concessionaires, in case delays are not attributable to them, to address fund crunch in such highway projects,” the Ministry has elaborated.
With a view to ameliorate the shortage of equity and improve liquidity, the government has also allowed Securitization of future cash flows, Deferment of Premium in stressed highway projects, Harmonious Substitution in financially stressed highway projects and 100% Equity Divestment after 2 years of construction of all highway projects under PPP mode.
Today Financial Express reported, government, which has taken highway construction upon itself given the paucity of private equity capital, has aimed to mobilise upwards of Rs 50,000 crore over the next few months through a unique asset monetisation exercise. It will lease out 75 operational projects — with combined length of 3,000 km — in the state sector to private players including global funds with patient capital through the toll-operate-transfer (TOT) route.