January 14, 2013 / 22:47 IST
GVK Power and Infrastructure today terminated contract with the National Highways Authority for building a section of road in Madhya Pradesh. "GVK Shivpuri Dewas Expressway, a subsidiary of GVK Power and Infrastructure, has terminated the concession agreement, on January 12, executed by it with NHAI," the company said in a BSE filing today.
Also read: NHAI to take up eco clearance issue with SC: CP Joshi
The project included 4-laning of Shivpuri Dewas section of National Highway from 236 km to 566.45 km in Madhya Pradesh, the company said. However, the company did not elaborate on the details of the contract termination.
Last week, another core sector firm GMR Infrastructure cancelled its contract with NHAI for building the Kishangarh- Udaipur-Ahmedabad highway. GMR Kishangarh-Udaipur-Ahmedabad Expressways, subsidiary GMR Infrastructure, had terminated the concession agreement entered into with NHAI for six laning of 555 Km road.
Meanwhile, NHAI, last week, moved the Supreme Court seeking modification of its guidelines mandating forest clearance prior to environmental clearance, saying the related procedures have delayed and stalled 22 important projects worth over Rs 20,000 crore.
It is feared that long delays in receiving such clearances are forcing the companies to abandon these projects as they are mainly debt-funded projects. Shares of GVK Power and Infrastructure closed at Rs 15.11 apiece, up 1.96 per cent on the BSE today. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
