NHAI board okays entity to revive stalled projects.

The National Highways Authority of India board on Thursday approved in principle a plan to set up an asset reconstruction company, which will take over stranded projects and nurse them back to health so that they are ready to take off.

The decision came amidst a surprise last-minute protest by the now-defunct Planning Commission which shot off a letter hours before the NHAI board meeting. Sources, however, said that the board decided to go ahead with the plan as it is expected to get the highway projects off the ground.

The company will take up such projects to push their completion. These projects are facing major delays due to non-availability of funds from private developers and financial institutions. Though NHAI officials did not give details of how many projects can be revived by this company, they added that a host of projects would be revived 'without causing any loss to the government'.

NHAI Board has members including secretaries from road ministry, planning commission and expenditure department. 'When the contours will be finalized, it will again be placed before the board. The Indian Banks' Association (IBA) has already given its consent,' said an NHAI official.


TIMES OF INDIA