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Mar 13, 2013
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Road developers may get easier exit options
The finance ministry has agreed to a proposal by the road ministry and the National Highway Authority of India (NHAI) to allow developers easier exit options. Once the proposal gets a Cabinet nod, it would allow concessionaires to exit road projects at any point of time.
For instance, concessionaires would be able to leave the project whenever they think it has turned unviable or are unable to handle them due to financial reasons. However, concessionaires would need to get the lender's clearance before exiting the project if financial closure has been achieved. Another condition placed on the concessionare is that it would have to get a replacement in the project. Once this mechanism is put in place, the NHAI would not forfeit the performance bank guarantee and the concessionaire would not drag the government into any litigation.
Source -
http://www.financialexpress.com
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