In a big relief to all the stakeholders in the construction of Delhi-Gurgaon stretch, National Highways Authority of India (NHAI) allowed Infrastructure Development Financing Company (IDFC) to take 74 per cent stake in the project on January 30 and is likely to extend deadlines for the work. Overlaying on the entire Delhi-Gurgaon stretch was to be completed, as per an agreement signed by the NHAI, the project concessionaire and IDFC.
As per the memorandum of understanding (MoU) signed between the concessionaire, NHAI and the lead lender (IDFC), the highways authority has the right to terminate the contract in case the milestones are not met. Sources in the highways authority said IDFC will have to manage the expressway efficiently since in case of poor performance and termination of the project, the financial institution will get less than Rs 300 crore from NHAI.
IDFC has about Rs 10,000 crore exposure into the road sector. The next big milestone for the new player would be to complete the modification of all entry/exit points within and outside the right of way (ROW) at its own cost. As per the MoU signed on September 19, 2011, this task has to be completed by mid-June.