Easy exit options for completed road projects will release Rs 4,000 crore to developers, which can be ploughed back in infrastructure projects or used to retire debt, India Ratings and Research (Ind-Ra) said on Monday.
The government Wednesday allowed developers to divest 100 percent equity in projects two years after the completion of such schemes, a move that can unlock investments worth about Rs 4,500 crore in the sector.
Five new National Highways Authority of India road projects have been awarded to Tamil Nadu at an estimated cost of over Rs 2,000 crore and these projects would drive the state into a new growth trajectory, Union Minister Pon Radhakrishnan has said.
The government plans to sell highways projects worth Rs 1 lakh crore to foreign pension and insurance funds to attract overseas investments into the sector, Union Minister Nitin Gadkari said on Wednesday.
Delays in acquisition of land for construction of highways has hit projects even as government has acquired over 31,000 hectares for building roads in the last three years, Parliament was informed Thursday.
Delays in decision-making by authorities, flaws in developer agreements and absence of a clear blueprint for highways have scuttled road sector's growth and PPP projects, NHAI Chairman R P Singh said on Tuesday.
The conglomerate headed by billionaire Ajay Piramal is hunting for road projects put up for sale by stressed developers, betting a change of government will stimulate growth and revive an infrastructure sector plagued with delays.