Banks have been asked by the union finance ministry to disburse loan to road projects developers who have acquired 80 per cent of the required land instead of the existing norm of 100 per cent. Earlier, banks were lending to projects that have 80 per cent of land. But later, it shifted to the current norm.
In a notifications to banks, the ministry directed banks to lower the land acquisition requirement for disbursing loans to road projects. The notification to banks followed letters written by Vijay Chhibber, Secretary, Ministry of Road Transport and Highways, and RP Singh, Chairman, National Highways Authority of India, requesting the Ministry of Finance to reverse the move to raise the norm relating to land acquisition for availing of bank loans.
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