Infrastructure companies have welcomed the GovernmentÂ’s move to bring in flexibility in the roads sector, including revised norms that permit stake sale in projects right after commissioning. The move is expected to accelerate the rate of churn of projects, increase the size of disinvestment, bring about liquidity, aid in debt swap and infuse fresh equity into new projects. R Balarami Reddy, Executive Director, Finance, IVRCL said that the decision will help speed up the process of exits and give more flexibility to the developer.
Under the National Highways Authority of India (NHAI) programme, until now, a developer of road projects could divest up to 74 per cent stake in the project two years after the date of commissioning. The developer had to retain the rest during the concessional phase. Now, the Cabinet Committee of Economic Affairs has permitted infrastructure companies to sell their stakes soon after the date of commissioning.
This could be in tranches or for the entire project value , Reddy explained. Sridhar Cherukuri, Chairman and Managing Director of Transstroy (India), said that these changes bring in flexibility to developers to divest stake and redeploy funds into new projects. We are at an advanced stake of concluding deals. T Adibabu, Chief Operating Officer, Finance, Lanco Infratech said the infrastructure sector has been waiting anxiously for regulatory changes as it would help infuse liquidity for developers.
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