In order to expedite the progress of stuck highway projects in the country, the Central Government has decided to come up with a new policy for such infrastructure projects, including those where legal proceedings have been initiated against the companies before the National Company Law Tribunal (NCLT).
Officials have shared that the decision was made to unlock funds for both the lenders and private companies involved in about 28-30 highway projects. All these identified projects have been brought to a standstill due to fund shortage. It was found that a sum of Rs 30,000 crore would be required to complete the stuck highway projects across the country.
The Road Transport Ministry has allowed the road development agencies including NHAI and NHIDCL to foreclose the contract by signing a supplementary agreement. With this permission, the authority would make full and final payment to the private companies for the value of work done or 90 percent of the debt due, whichever is lower. The value of the work done will be derived after a detailed assessment of the progress, and the debt due will be as per the contract agreement, which mentions the exact cost of the project.
NHAI officials have informed that all the stuck projects are being implemented on "build, operate and transfer" (BOT-Toll) mode. Officials have stated that the new method will be a win-win situation for both the road owning agencies, lenders and private players.
In the past, the Government had formed a high-level committee to deal with the stuck highway projects across the country.
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