Question : Languishing Highway Projects

(a) whether the Government has approved one time capital infusion by the National Highways Authority of India (NHAI) to get stalled road projects moving;

(b) if so, the details thereof;

(c) whether India Ratings and Research (Ind-Ra) has stated that the lenders and developers are not keen on taking advantage of this infusion, if so, the reasons therefor;

(d) whether pumping in funds will not be enough to get all projects moving, if so, the facts in this regard; and

(e) the steps taken by the Government to remove the hurdles being faced by the developers?

THE MINISTER OF STATE IN THE
MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

(SHRI PON. RADHAKRISHNAN)

(a) to (e) Government has permitted one time fund infusion to revive and physically complete languishing national highway projects under Public-Private Partnership (PPP) mode that have achieved at least 50% physical completion. It is expected that the infusion of moderate funding can quickly bring such project to completion. National Highways Authority of India (NHAI) has been authorised to examine such proposals on a case-to-case basis. Government is not aware of any report by India Ratings and Research (Ind-Ra). However, in case of languishing highway projects, lenders had earlier expressed their reservation in providing additional lending, which would now be addressed by implementation of the one time fund infusion policy by NHAI.

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