Moneycontrol Bureau
Shares of road developer companies are excited on Wednesday as Finance Minister P Chidambaram has given a nod to suggestions made by Rangarajan committee to allow rescheduling of premium payment for stressed highway projects. Gammon Infra soared 15 percent, both IVRCL and Ashoka Buildcon were up 4 percent and GVK Power and Infrastructure jumped 2 percent intraday.
The approval is effective from today while Highway Ministry and the National Highways Authority of India (NHAI) will take it up on case-to-case basis now.
Talking to CNBC-TV18, NHAI Chairman RP Singh says 21 projects will benefit due to premium rescheduling. He believes that almost all big concessionaries will benefit from the new norms projects including where construction has started. The proposals will be majorly beneficial for 2 to 4 laning expansion. “Around Rs 29,000 crore premium is involved in 21 projects which are stalled,” he added.
At 10:27 hrs IVRCL was at Rs 11.27, up Rs 0.21, or 1.90 percent, GVK Power & Infrastructure at Rs 8.95, up Rs 0.06, or 0.67 percent, Ashoka Buildcon was at Rs 62.00, up Rs 1.50, or 2.48 percent. Gammon Infrastructure Projects was at Rs 7.55, up Rs 0.68, or 9.90 percent on the BSE.
Posted by Nasrin Sultana
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