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Onetime fund infusion for all stalled highway projects | Canindia News

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Onetime fund infusion for all stalled highway projects

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CanIndia New Wire Service 0 comments

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New Delhi, Oct 14 (IANS) The union cabinet on Wednesday approved a one-time fund infusion for reviving and completing all stalled national highway projects, an official said.

“The decision will allow the provisions of the policy circular of National Highways Authority of India (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,” said an official statement.

However, loans extended through the fund infusion will be recovered along with interest at bank rate plus two percent by NHAI from the annuities payable biannually through the execution of a tripartite agreement among the senior lender, concessionaire and the authority, the statement added.

The statement also said that with the adoption of the policy, all the major stakeholders in the PPP arrangement — NHAI, lender, developer and concessionaire — will have increased comfort level.

The government hopes that the revived highway projects will facilitate the improvement of socio-economic conditions and economic activities in the entire nation powered by increased connectivity, the statement added.

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