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Banks shy of funding PPP projects in highways

Banks shy of funding PPP projects in highways
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Reports suggest that petroleum and natural gas and highways sectors witnessed maximum number of delayed projects owing to lack of funding or issues like statutory cleara­nces. Highways ministry, which has been worst affected after good performance in 2011-12, has said that banks were not coming forward to fund projects on public-private partnership (PPP) mode.

Contractors of over a dozen projects have failed to tie up finances and in some cases, the deadlines have been missed by even four to six months. Many of these projects involve investment of over Rs 1,500 crore. Banks may have reached their investment cap in infrastructure or in a particular sector like roads. This can only be addressed at the highest level, media reports suggest. Highways ministry told the finance ministry that about 39 NHAI projects were awaiting environment, forest and wildlife clea­rances. Cabinet Committee on Economic Affairs (CCEA) would discuss ways to expedite infrastructure projects that are delayed owing to absence of environment clearance.

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