Aug 15 2016 | India Opportunities
112 projects of NHAI are in delay mode
The Government of India through NHAI have taken certain measures to remove the hurdles affecting the construction of NH projects in the country. The major obstacles in the path of highway development includes streamlining of land acquisition and regulatory clearances, close coordination with other ministries, revamped Disputes Resolution Mechanism.
Minister of State for Road Transport and Highways Munsukh L Mandaviya has informed the Upper House recently that there are around 112 projects of National Highways Authority of India (NHAI) in delayed mode due to issues like land acquisition, utility shifting, non-availability of Soil or Aggregates, poor performance of contractor, delay in statutory clearances, public agitation, disputes.
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.
With a view to ameliorate the shortage of equity and improve liquidity, 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.