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NHAI invites application for the fund infusion by developers

22 Jun 2015 Evaluate

The National Highways Authority of India (NHAI), which last month got the government's approval to provide funds to projects that are in advanced stages of completion but are stuck due to equity crunch, has invited applications from developers to come forward with a financing plan and justification for the fund infusion that they are seeking from the authority.

NHAI in a communiqué has said that “The concessionaire seeking such relief shall approach NHAI with an application which shall clearly state the financing plan required for completing the project construction and justifying one time fund infusion”. NHAI, inviting applications from developers of such projects, has said that acceptance of the concerned senior lenders would be sought for providing such a relief in accordance with the approved scheme.

The authority in its bid to accelerate highways building and salvage stuck road projects will provide financial assistance from corpus earmarked to any languishing highway project in BOT (build, operate and transfer) mode that has achieved at least 50 per cent physical completion where infusion of moderate funding could lead to its completion.

The government has stated that the assistance would be provided on a loan basis at bank rate + 2 per cent drawing a parallel with the provisions of ... Model concession agreement. A robust third party evaluation mechanism will be developed by NHAI to determine the eligibility of the concerned project and the extent of bridge fund required to complete the project.

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