In a bid to kick start 16 languishing highway projects, the Cabinet Committee (CCEA) had last month allowed for one time fund infusion to revive such projects.
CNBC-TV18 exclusively learns that the National Highway Authority of India (NHAI) will invite developers eligible for this one-time relief to submit their financing plans as early as next week.
Only those projects that are languishing under the Built-Operate-Transfer (Toll) mode and have achieved at least 50 percent completion will be eligible for a special intervention in the form of a bridge fund. NHAI will provide financial assistance to those projects that are stranded as on November 2014.
Sources say that funding to these 16 projects is likely to be provided to the tune of nearly Rs 3,700 crore, from the corpus earmarked for this one-time fund infusion by NHAI. The bridge fund will be provided on a loan basis at bank rate, plus additional 2 percent, after approval of the NHAI board.
One criteria of availing this benefit is that once the project is completed, the first charge on the toll receivables would be ensured for NHAI through execution of a tripartite agreement between the lender, concessionaire and NHAI.
Sources in the highway authority indicate that a third party evaluation mechanism would be developed by NHAI to determine the eligibility of the concerned project and the amount of funds to be dispensed. Sources also indicate that few projects of Gammon India could be among the stranded projects that are expected to receive the one-time bridge fund, if eligible.
The CCEA had last month approved a special intervention for 16 projects that are languishing due to delays on account of land acquisition, grant of statutory clearances, local issues and shortage of construction materials etc.
The government has been taking several measures to kick start several road projects under both EPC (Engineering, Procurement and Construction) and BOT mode. This move is expected to add momentum to the overall growth of the highways sector in India which is already on the path of revival.
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