GMR exits NHAI project in frustration over red tape

The GMR Group has walked out of the Kishangarh-Udaipur-Ahmedabad National Highway project 16 months after it won the project in a bid, reports CNBC-TV18. GMR had promised to pay the National Highways Authority Of India over Rs 9,000 crore on a net present value basis. The group says that it exited the project after waiting far too long for the grant of critical permissions.

According to Arun Bhagat, EVP and group head - corporate communications, GMR Group, "This is a 55 km-long, 4-6 laning of the Kishangarh- Udaipur- Ahmedabad stretch."

"We were awarded this in September 2011. At the end of about 16 months since the award of contract, certain critical permissions that were applied for were yet to be granted," he clarified.

"Despite doing whatever was required, the permissions were not granted and this forced us to serve a termination notice under terms of the contract."