New policy to resolve ₹30,000-cr stalled NH projects
In a bid to unlock the money of lenders and private players, including the crisis-hit ones, the transport ministry has unveiled a policy for resolving stalled highway projects worth ₹30,000 crore. Agencies such as NHAI can foreclose the contract by signing a supplementary agreement whereby the authority will make full and final payment to the private player for the value of work done or 90% of the debt due, whichever is lower. The value of work done will be arrived at after a detailed assessment of the progress, and the debt due will be as per the contract agreement, which mentions the exact cost of the project, said an official. He informed that all the stuck projects are being implemented on a build operate and transfer (BOT/TOLL) mode. The policy also defines the projects that would qualify for such a resolution — projects where work has stopped due to inability of the contractor or concessionaire on account of proceedings initiated before the National Company Law Tribunal under the Insolvency and Bankruptcy Code, or default on account of both the clients, which could be NHAI, PWD and the private player. Once the private player exits, the agency can invite bids for completing the project and start work. Similarly, the lenders would get back some portion of the loan, rather than losing the entire amount.
📅Published on:
20 March 2019
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