(a) whether it is true that Banks and Financial Institutions are not
willing to finance road projects;
(b) if so, the reasons therefor;
(c) whether the Government/National Highways Authority of India have held
meetings with banks and financial institutions in this regard; and
(d) if so, the details and outcome thereof?
THE MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS (SHRI SARVEY SATHYANARAYANA)
(a) and (b) Many of the banks/lenders, who had earlier responded to Build-Operate-
Transfer (BOT) project financing positively, have reached the ceiling of the sectoral
exposure ceilings for sector specific exposure in consonance with prudential norms
issued by the Reserve Bank of India and are currently not willing to fund BOT road sector
projects under Public-Private Partnership (PPP) mode of delivery.
(c) and (d) Various meetings have been held by the Ministry of Road Transport and
Highways, Ministry of Finance and the National Highways Authority of India (NHAI) with
lenders/bankers persuading them to lend more to road sector on easier terms.  The issue
of debt to road sector was also taken up with the Ministry of Finance and the Reserve
Bank of India (RBI). As a result, these loans are now considered as secured to the extent
covered by the termination provisions under the Concession Agreements. The requirement of
securing 100% land before financing by lenders was amended and the provision was reduced
to 80 % by the Ministry of Finance on persuasion by NHAI.