Gurgaon Toll bailout may cost the exchequer Rs 130 crore
The Ministry of Road Transport and Highways`s proposal to take over Gurgaon Toll Plaza may cost Rs 130 crore to the government.
New Delhi: The Ministry of Road Transport and Highways`s proposal to take over Gurgaon Toll Plaza may cost Rs 130 crore to the government as the project`s leading lender IDFC is believed to have decided against buying a stake in the highway project.
The Ministry is likely to takeover the project from its current developer DS Construction.
"We will have to buy out the Delhi-Gurgaon Toll Plaza, IDFC is unlikely to go-ahead with the takeover... So will have to buy about 74 percent equity in the toll plaza," a Road Ministry official told a news agency.
On being asked about the amount the government will incur after takeover of the project, the official said: "Approximately Rs 130 crore."
IDFC had earlier said that it will takeover the entire debt of Rs 1,600 crore of the expressway project, which now the Ministry says will not be taken into consideration, sources said.
In January, this year, the Board of National Highways Authority of India (NHAI) had approved 74 percent equity takeover by IDFC in the Delhi-Gurgaon expressway project from its present developer DS Construction Ltd.
IDFC was likely to pick up 74 per cent stake in the project with 24.8 percent remaining with DSC and 1.2 percent with Jaypee Group.
Last year, DS Construction received termination notices from NHAI after users complained of inordinate delays at the toll plaza.
The company had then approached High Court against NHAI`s termination notice which had stayed the implementation of the notice.
Meanwhile, in order to revive the highway sector, the government has allowed harmonious exit for the concessionaires in ongoing and completed National Highway Projects.
This move is aimed at expediting the implementation of development of road infrastructure in the country and insulate the NHAI from heavy financial claims and unnecessary disputes.
A large number of highway projects, including 20 major projects, involving investment of Rs 27,000 crore, are stalled for various clearances.