Feeling that banks are misguided over lending to road developers, the National Highways Authority of India (NHAI) has asked the banks to hold joint meetings with it before lending to road infrastructure projects. NHAI feels that often lenders are either misguided or spend more than what is required on infrastructure projects.
NHAI said that it has held a meeting with the Indian Banks Association in this regard. NHAI opines that its needs to sit together before a bank decides to lend a certain amount of money to road developers. As banks to spend more than what was required for road projects has led to a number of projects being held up.
A senior NHAI official said that often, NHAI will have an estimate on project, but the concessionaire and the banks feel the estimate is not correct and come up with their own, which is very high. Then, banks lose out if something happens to the project, the NHAI official said.
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