CCEA clears premium rescheduling for road projects: Sources

In a decision that could be a boost for infrastructure companies like GMR and GVK, the Cabinet Committee on Economic Affairs (CCEA) cleared premium rescheduling of road projects, reports CNBC-TV18’s Rituparna Bhuyan, quoting sources.

Last minute modifications during the CCEA meet ensured that only certain principles of the original proposal were approved. The NHAI will now consider each project on a case-to-case basis to determine a project’s eligibility for the rescheduling of restructuring. The original proposal considered 23 projects whose cumulative premium to be rescheduled amounted around Rs 98,000 crore. All of it was to be back loaded to provide relief to the road developers. However, conditions such as bank guarantee, upfront penalty, and a higher discount rate of 12 percent have also been placed. It now remains to be seen if the highway developers will be interested to subscribing for this one-time relief.