Road Transport Minister Nitin Gadkari on Monday met top bankers in Mumbai to ease the bottlenecks plaguing highway contracts of worth Rs 20,000 crore.
According to sources, Gadkari met the chairmen and managing directors of banks including ICICI Bank, HDFC Bank, SBI and Axis Bank and discussed issues affecting at least 10 BOT (build, operate, transfer) and 13 hybrid-annuity projects.
Hybrid-annuity projects are the ones where 40% financing is done by the government and the remaining by the contract developer.
Meanwhile, the Ministry of Road Transport and Highways has prepared a list of national highway projects that turned “chronic” primarily due to issues relating to land acquisition, which impaired construction. Banks are reluctant to re-finance these projects because of their non-performing assets position. Read More…