--News-- Govt may open exit option for concessionaires in road sector after financial closure A committee of ministers (CoM) has endorsed the plan to allow easy exit options to concessionaires in the road sector. According to sources, the CoM, which met on Monday, decided to allow the developer to make a 100% exit immediately after financial closure is achieved. Currently, developers are required to hold at least 26% of equity up to two years after the date of commercial operations (CoD). The easier exit policy is expected to release funds stuck in projects awarded before 2009. The CoM meeting was attended by finance minister P Chidambaram, road minister CP Joshi and deputy chairman of Planning Commission Montek Singh Ahluwalia. With the CoM giving its nod, it is likely that the Cabinet will clear the norms soon. As per the decision, a concessionaire who would want to make an exit after financial closure has to approach the lenders with a letter of consent and, once the lenders and the concessionaire reach an agreement, the lenders can find a new developer and approach the NHAI board for a final approval.
Posted on: Sat, 08 Jun 2013 09:24:39 +0000
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