Road ministry proposes easy foreclosure of 86 projects.

Road ministry has moved a proposal, seeking a policy decision to revive about 86 languishing highway projects that have become unviable. It has proposed easy 'foreclosure' of such projects so that private developers can walk out of the projects, paying lesser 'penalty'.

The proposed scheme will be applicable for both Public-Private-Partnership (PPP) projects and those on government-funding mode or EPC.

Sources said the ministry has moved this proposal after repeated references from National Highways Authority of India (NHAI), seeking its view on the penalty amount to terminate such contracts. Officials said since these projects have become financially unviable and have been delayed by years due to authority's failure to provide land in time, the fresh proposal is to cut down the penalty by one-tenth in 'public interest' so that projects can be restructured and awarded.


TOI