Speedier exits for highway developers in offing
August 13, 2012
Warning: Undefined variable $thumb in /var/www/web/indiantollways.com/wp-content/plugins/digg-digg/include/dd-class.php on line 887
There is good news for highway developers such as L&T, Reliance and GMR with the National Highways Authority of India (NHAI) formulating a plan to speed up the exit of contractors, who take up projects under the build-operate-transfer (BOT) route.
The move follows a virtual standstill in the award of new contracts as developers are strained for equity and are unable to raise fresh resources to take up new road stretches. Apart from a weak equity markets preventing public offers, such as those by IL&FS Transportation Networks a few years ago, even private equity funding has dried up in recent months because of the global economic environment and the resultant slowdown in India.
Since 2009, the rules allow developers to exit two years after a project is completed. Developers of around a 100 projects, which run into thousands of crores, do not have this option for projects bagged before 2009.
The new plan is to permit exit immediately after construction is completed in all BOT projects, helping developers unlock value from these projects where cash flow has begun. Last month, the NHAI board decided to amend the rules but a final decision will be taken by an inter-ministerial group.
NHAI feels once they are also allowed to 100% divestment of their stake in the already completed projects, these companies will have more equity available with them. As they exit from the project, firms of similar net worth specializing in operation and maintenance would take over the project for rest of the concession period.
Officials said several international majors such as Macquarie and Morgan Stanley have evinced interest in running projects after taking them over from the developer. In addition, NHAI has sounded out Indian banks to scout for other potential investors, although the sale needs to be approved by the highway authority. The developers are, of course, cheering the move. “Why should companies be made to stick to a project for 15-20 years when they can take up new projects? Allowing them to exit from completed projects will improve investment scenario,” O B Raju, managing director (highways) of GMR said.
Raising the concern of private equity drying up, Singh in his letter has said shares of many highway developer companies those case out with IPOs four-five years back are going to the market at “steep discounts.”
SOURCE: http://timesofindia.indiatimes.com
10 Comments on “Speedier exits for highway developers in offing” Post your comment
Featured Insights
- Gurugram: Hero Honda chowk to not choke anymore as Delhi-Jaipur flyover set to open soon
- Future of extensive Smart City projects uncertain
- Financiers express interest for Mumbai-Nagpur super expressway
- Indian start-ups to double by 2020: Nasscom
- SBI inks pact with IIT-Kharagpur for fintech innovation
- Supreme Court refuses to stay Allahabad HC order of making DND fly-way toll-free
- An analysis by CRISIL on the pace of road construction
- Mumbai University gives way for better connectivity at BKC
- Debit card scare: A lesson for banks and their customers
- What is a Smart City ?
The ITW Team
 Sachin Bhatia Chief Editor |
Leisure
E-Z Pass Only
Improved Car Seat Belt 40% Less Accidents
NHAI's First ETC(Electronic Toll Collection) PLAZA
- ETC based on Microwave Technology(CEN 278) implemented at Delhi - Gurgaon Super Connectivity
Technology by: -Kapsch Metro JV.
News Categories
- NHAI (184)
- Highway (63)
- BOT (71)
- Projects (61)
- Default (204)
- Road (43)
- About (175)
- Infrastructure (26)
- Tolling (5)
- Investment and Finance (102)
- Expressway (40)
- Construction (15)
- Smart City (87)
- NHDP (33)
- ITS (21)
- Delhi (32)
- Safety (14)
- Toll Plaza (12)
- Toll Management System (2)
- Metro Rail (42)
I have stressed in my blogs and articles that when financial budget of 2011-12 is having allocation of Rs. 2,14,000 crores for the development of infrastructure and yet we are not in the position to pay to the builders their cost of construction of roads under BOT model of payment but allowing the builders to recover the cost by way of charging Toll Tax for the number of years depending on their amount of invested procured from the funding institution for which the Government is paying annuity . This model of BOT has made the builders the owner of the road and dictate to Government and NHAI which is clear from the court case of DSC Ltd and NHAI.. They DSC. have created permanent chaos of traffic jams at Delhi Gurgaon and Kherki Dhaula toll plazas. The Delhi and Haryana Governments could easily pay their dues of balance amount of app. Rs.750 crore for the length of 27.5 KM and could make the commuters free from the clutches of the concessionaires The Govt. could recover from the public by nominally increasing the road tax iby both both the states and make the toll free at least two Toll Plazas.
Please refer to my article Holiday for Delhi Gurgaon Toll plazas in http://www.easydriveforum.com and my twitter account.
High court is suggesting the increase of 5 Toll boths in either side to tackl;e the Jams at peak hours. My simple logic is that increasing the booths will further increase the chaos of traffic on Gurgaon side because four lane traffic is entering go to 16+5 toll lanes and then converging the entire traffic to 4 lanes again having very short lead space specially when Ambience Mall is at a distance of 75 to 100 metres and collision of vehicles is bound to occur and exit of plaza will be blocked due to slow movement of traffic to Gurgaon at peak hours.
r admitted he knew Rambo was struggling at half timeHe will now miss the Dragons’ clash with Moldova as they try to build on their Euro 2016 success and reach to 2018 World Cup Russia.
“And after a hitting the goal trail following a careful bedding in process at the club, Morgan is hoping that his boss Ranieri unleashes their new weapon against the Saints.”
Et nyt 氓r kommer ofte med en ny kollektion af smukke brudekjoler!Se de allerflotteste brudekjoler fra forskellige brudekjole kollektionen.#Brudekjoler2020,#Brudepikekjoler2020,#KjolerforSpesielleAnledninger,#Bryllupsfestkjoler2020,#tilbeh酶r2020,#KledegsomenStjerne2020,#Formellekjoler,#Brudepikekjoler2020,#Blomsterpikekjoler2020,#Kjolertilmorentilbruden2020,#Engroskjoler2020
langermet marinebl脙楼 aftenkjole https://www.ericgown.no/Selskapskjoler-c17/
Et nyt 氓r kommer ofte med en ny kollektion af smukke brudekjoler!Se de allerflotteste brudekjoler fra forskellige brudekjole kollektionen.#Brudekjoler2020,#Brudepikekjoler2020,#KjolerforSpesielleAnledninger,#Bryllupsfestkjoler2020,#tilbeh酶r2020,#KledegsomenStjerne2020,#Formellekjoler,#Brudepikekjoler2020,#Blomsterpikekjoler2020,#Kjolertilmorentilbruden2020,#Engroskjoler2020
brudekjoler p脙楼 nettet https://www.ericgown.no/Brudekjoler-c2/
Brudekjoletrender i 2020.-Hva slags brudekjole skal jeg velge? S酶ker etter de nyeste brudekjoler og 2020 bryllupskjoler design? QueenaBelle tilbyr en omfattende 2020 nye brudekjoler i billig pris.#Brudekjoler2020,#Brudepikekjoler2020,#KjolerforSpesielleAnledninger,#Bryllupsfestkjoler2020,#tilbeh酶r2020,#KledegsomenStjerne2020,#Formellekjoler,#Brudepikekjoler2020,#Blomsterpikekjoler2020,#Kjolertilmorentilbruden2020,#Engroskjoler2020
300 brudekjole https://www.ericgown.no/Brudekjoler-c2/
Brudekjoler 2020, Brudepikekjoler 2020, Festkjoler,Finn den perfekte rimelige kjole og tilbeh酶r til ditt bryllup, prom og andre spesielle anledninger. Kj酶p 2020 nyeste stiler for brudekjoler, brudepikekjoler.#Brudekjoler2020,#Brudepikekjoler2020,#KjolerforSpesielleAnledninger,#Bryllupsfestkjoler2020,#tilbeh酶r2020,#KledegsomenStjerne2020,#Formellekjoler,#Brudepikekjoler2020,#Blomsterpikekjoler2020,#Kjolertilmorentilbruden2020,#Engroskjoler2020
lange kjoler til bryllup https://www.ericgown.no/Brudekjoler-c2/
Kj酶p 2020 nyeste stiler for brudekjoler, brudepikekjoler og aftenkjoler til en engros billig pris. V忙r vakker p氓 den stoe dagen!#Brudekjoler2020,#Brudepikekjoler2020,#KjolerforSpesielleAnledninger,#Bryllupsfestkjoler2020,#tilbeh酶r2020,#KledegsomenStjerne2020,#Formellekjoler,#Brudepikekjoler2020,#Blomsterpikekjoler2020,#Kjolertilmorentilbruden2020,#Engroskjoler2020
venus brudekjoler https://www.ericgown.no/Brudekjoler-c2/
Kj酶p 2020 nyeste stiler for brudekjoler, brudepikekjoler og aftenkjoler til en engros billig pris. V忙r vakker p氓 den stoe dagen!#Brudekjoler2020,#Brudepikekjoler2020,#KjolerforSpesielleAnledninger,#Bryllupsfestkjoler2020,#tilbeh酶r2020,#KledegsomenStjerne2020,#Formellekjoler,#Brudepikekjoler2020,#Blomsterpikekjoler2020,#Kjolertilmorentilbruden2020,#Engroskjoler2020
bohemske brudekjoler https://www.ericgown.no/Brudekjoler-c2/
Skal du giftes i 2020? S氓 skynd dig at booke en tid til brudekjole pr酶vning, hvor du blandt andet kan pr酶ve den smukke kjole. #Brudekjoler2020,#Brudepikekjoler2020,#KjolerforSpesielleAnledninger,#Bryllupsfestkjoler2020,#tilbeh酶r2020,#KledegsomenStjerne2020,#Formellekjoler,#Brudepikekjoler2020,#Blomsterpikekjoler2020,#Kjolertilmorentilbruden2020,#Engroskjoler2020
brudekjole priser https://www.ericgown.no/Brudekjoler-c2/