SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Road ministry set to tweak road developers' exit policy

29 Jan 2014 Evaluate

In an attempt to make road developers’ journey less bumpy, the road ministry is set to modify its exit policy and make it easier for new investors to enter and replace existing ones. This move would allow road-developers to free up capital, ramp up execution of delayed projects and would unlock bad loans owed by financial institutions.

This development comes on the heels of a letter written by R.P. Singh, chairman, National Highways Authority of India (NHAI) to Vijay Chhibber, secretary, ministry of road transport and highways, in August 2013, seeking a review of the policy which he called "sub-optimal".

Accordingly, the ministry has relaxed the policy, it formed last year and allowed concessionaires to divest their stake in the road projects without necessarily forming new special purpose vehicles (SPVs). Earlier policy too allowed promoters to exit, provided all the promoters agreed to offload their stakes and form a fresh SPV with a new composition of promoters.

Removing the requirement of forming a new SPV would ensure that lenders of the project will not have to carry out fresh due diligence and that the project will not need fresh clearances like environment and forest clearances.

Further towards this development, Finance ministry to has given a ‘go-ahead’ in the exit policy, and the ministry would soon be notifying these after internal approvals.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×