Seeking to attract developers to new construction projects the Union Roads Ministry has proposed easing norms for road builders. The Ministry has sent a note to the Cabinet Committee on Investment suggesting an early exit for road developers.
The proposal seeks to permit them to sell 100 per cent equity in a road project even after the award of the contract, in a significant dilution of existing norms that lock a concessionaire into a project until two years after the start of commercial operations.
A developer can exit the project at any stage, even after the award of a contract, an official close to the development said. The entity succeeding should fulfil all the qualifications required. The new entity should have the technical expertise to execute the project and will have to make a proposal to NHAI. Once the authority approves the proposal, the existing concessionaire can exit a project.
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