As several of road developers are are under stress and are finding it tough to raise debt and equity to finance projects the National Highways Authority of India (NHAI) is seeking to push a relief package for road developers. The agency is looking at allowing a staggered payment which will allow developers to pay a lower upfront premium this year and instead postpone a part of the amount during the latter part of the contract period to make the projects viable.
The Prime Minister’s Office (PMO) is to consider ways to revitalise’ the highway sector, considering its recent poor show in the wake of the changed economic scenario. So far this year, NHAI has awarded contracts to build under 1,000 km of highways compared to the revised target of 4,800 km.
Originally, PMO had set a target of 9,500 km, twice the revised level. The bailout is being discussed as large players such as GMR and GVK walked out of projects.
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