Despite the 20 per cent viability gap funding offered by the government, no private player is ready to bid for the 22-km trans-harbour sea link road project connecting New Mumbai to Sewri.
This is because infrastructure developers feel that the Rs 10,000-crore project is unviable as it involves high finance costs and lack of liquidity.
Banks and financial institutions are wary of funding road projects owing to execution challenges and thatÂ’s why no company is interested in a massive project like the sea link project, reports indicate.
Toll road and greenfield (new) port projects suffer from lower-than-expected traffic growth, reports indicate.
A recent report of India Ratings and Research shows low economic growth led to fall in vehicular growth even on high-density roads while issues pertaining to land and right of way acquisition continue to magnify completion risks.
It says the long-term credit fundamentals for infrastructure projects remain protected, underpinned by favourable demand trends due to IndiaÂ’s massive infrastructure deficit.
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