Rangarajan panel on road developers bailout to be set up soon
The government will soon constitute a panel, headed by PMEAC Chairman C Rangarajan, to look into the issues pertaining to bailout of highway developers.
New Delhi: The government will soon constitute a panel, headed by PMEAC Chairman C Rangarajan, to look into the issues pertaining to bailout of highway developers.
Rangarajan, who heads the Prime Minister's Economic Advisory Council, is expected to announce the constitution of the three-member panel soon, a source told the agency, adding that it could be as early as Thursday.
The government last week approved a proposal for the postponement of premium payments by highway developers and has referred the matter to the Rangarajan panel.
The move is likely to provide relief to players such as GMR, GVK and Ashoka Buildcon. Their projects have been facing delays on account of high premium -- the payment made by the developer to National Highways Authority of India under the build, operate and transfer (BOT) mode.
The premium, which is offered by companies during the bidding stage, is based on projected returns from tolls.
The Ministry of Road Transport and Highways had sent a proposal to the Cabinet seeking its nod for rescheduling of premiums of about Rs 1 lakh crore in case of 23 awarded BOT (Toll) projects.