Ministry plans sops for road developers

November 5, 2012

NEW DELHI: The highways ministry will soon seek Cabinet nod to allow private road builders to “exit” from projects soon after construction is over. The move comes after the proposal mooted by NHAI remained unresolved even after several rounds of discussion in an inter-ministerial group on highways.

National Highways Authority of India (NHAI) has formulated the plan to speed up the exit of contractors, who take up projects under the build-operate-transfer (BOT) route, claiming that this would unleash substantial capital kept in finished projects as companies’ equity. It has also claimed that this flow of capital would help cash-strapped developers take up new highway stretches.

source:http://articles.timesofindia.indiatimes.com