NHAI ropes in new investor for stalled project in Andhra Pradesh-Telangana

NEW DELHI: The government has roped in a new investor for completing an important Rs 1,684-crore highway project in Andhra Pradesh and Telangana.

" NHAI today approved the harmonious substitution of Gammon Infrastructure Pvt Ltd by Brookfield India Holding Pvt Ltd for the important Vijayawada-Gundugolanu project in the states of Andhra Pradesh and Telangana, which was stalled," an official statement said.

It will help in salvaging the project by bringing in fresh "equity investment" of $100 million from Brookfield India Holding, it added.

Brookfield India Holding is a subsidiary of Brookfield Infrastructure Partners LP, an international infrastructure fund.

The substitution of Gammon Infrastructure was possible due to the recent policy initiative of the government wherein the concessionaires who are facing difficulties in implementing PPP projects can be substituted in harmonious manner by a new investor, the statement said.

"In this case, NHAI observed that the concessionaire was facing financial stress and was unable to meet its obligations under the Concession Agreement," it said.

The project was approved with a total project cost of Rs 1,684 crore.