CCEA may allow highway companies to exit projects after stakeholder nod

NEW DELHI: Cabinet Committee on Economic Affairs in its meeting tomorrow may allow highway builders to fully exit the project or partially divest equity in the road project after approval from the stakeholders.

" CCEA may allow exit of consortium member or sole bidder from contract who cannot be salvaged and also facilitate divestment of equity three-month post COD (commercial operation date)," sources said.

This can only be done after the consent from NHAI and consortium of lenders. The details whether this move will apply to the projects prospectively or retrospectively will be finalised once the proposal is approved by CCEA, the sources said.

Sources added that project would be constructed by the company which specialises in road building and can then be taken over by the one whose expertise is operation and maintenance.

The exit can only be allowed if there is another willing company to take up the project.

CCEA is also likely to approve the four-laning of the Dimapur-Kohima highway in Nagaland estimated at Rs 2,000 crore, tomorrow.

"The four-laning of the Dimapur-Kohima highway may be given clearance in tomorrow's meeting," a source said.

This project was delayed due to delay in land acquisition process in the state.

The 49 km four-laning of the stretch is part of the Special Accelerated Road Development Programme in North East (SARDP-NE).

At present, Nagaland has 494 km of National Highways.