One time fund infusion to revive and physically complete languishing national highway projects
No: --- Dated: Oct, 14 2015
| One time fund infusion to revive and physically complete languishing national highway projects |
| The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi, today gave its approval for one time fund infusion to revive and physically complete languishing national highway projects under the extension of provision available for BOT (Toll) projects to BOT (annuity) projects. The decision will allow the provisions of the Policy Circular of NHAI issued in June this year on one time fund infusion for BOT (Toll) projects to be extended and made applicable in case of languishing projects on BOT (Annuity) mode, subject to the condition that after completion of construction of such projects, loans are to be recovered along with interest at the rate of Bank Rate plus two percent by NHAI from the Annuities payable, bi-annuaily, through execution of a tripartite agreement among the senior lender, concessionaire and the Authority. This infusion of fund would be a one-time dispensation for all such projects that have been languishing as on 1st November, 2014. AII such cases and the amount of bridge fund required in each case shall be approved by the Authority, on a case to case basis. This decision will revive highway projects in the country. It will also facilitate uplifting the socio-economic condition of the entire nation due to increased connectivity across the length and breadth of the country, leading to enhanced economic activity. By adopting this policy, all major stakeholders in the PPP arrangement - the Authority, lender and the developer, concessionaire would have an increased comfort level resulting in revival of the sector and this will bring relief to citizen and travellers in that area. |