GMR and GVK infrastructure companies are walking out of mega road contracts as they are unable to arrange funding for those projects, the National Highways Authority of India (NHAI) has said.
The companies are not cancelling the road projects on account of delays in environment clearance or regulatory hurdles as cited in their notices, NHAI said on January 17. National Highways Authority of India Chairman RP Singh said that GMR and GVK are are walking out of two mega projects as there is change in economic scenario and escalation of cost.
Talking to the media on the sidelines of a FICCI event, Singh said GVK project requires an equity of Rs 1,500 crore. GMR project may require an equity in the order of Rs 2,000 crore. In the present scenario, they are overlevereged financially. For them to raise this kind of equity is not possible, he added.
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