+
NHAI formulating policy for early exit of developers
ROADS & HIGHWAYS

NHAI formulating policy for early exit of developers

The National Highway Authority of India (NHAI) is preparing a new policy that would facilitate and allow the construction companies to exit as soon as the road project is commissioned. The NHAI's move follows highway construction industry's pressing demand to allow them to disinvest from the highway projects when those are commissioned.

The new policy, aimed at allowing exit to developers as soon as the project is commissioned, is presently stuck with the inter-ministerial group consisting of Ministry of Road Transport and Highways, Law Ministry, Finance Ministry and the Planning Commission. Also, the Authority has favoured the demands that the concessionaires having signed contracts before 2009 be allowed complete disinvestment.

The then contracts mandated that the companies maintain 26 per cent equity in the project for the entire concession period. The Planning Commission and the Finance Ministry have, however, objected to the move.

If it goes through the group, it will be required to be approved by the Union Cabinet. Companies with a big portfolio of highway projects are currently looking at selling of them to monetise the value and move on to investment in new projects.

The National Highway Authority of India (NHAI) is preparing a new policy that would facilitate and allow the construction companies to exit as soon as the road project is commissioned. The NHAI's move follows highway construction industry's pressing demand to allow them to disinvest from the highway projects when those are commissioned. The new policy, aimed at allowing exit to developers as soon as the project is commissioned, is presently stuck with the inter-ministerial group consisting of Ministry of Road Transport and Highways, Law Ministry, Finance Ministry and the Planning Commission. Also, the Authority has favoured the demands that the concessionaires having signed contracts before 2009 be allowed complete disinvestment. The then contracts mandated that the companies maintain 26 per cent equity in the project for the entire concession period. The Planning Commission and the Finance Ministry have, however, objected to the move. If it goes through the group, it will be required to be approved by the Union Cabinet. Companies with a big portfolio of highway projects are currently looking at selling of them to monetise the value and move on to investment in new projects.

Related Stories

Gold Stories

Next Story
Infrastructure Energy

Perkins Begins Production of 5016 Power Generation Engine

Perkins has commenced production of its new 5016 full-authority electronic engine, completing its 5000 Series range of 6-, 8-, 12- and 16-cylinder engines. Manufactured in Stafford, UK, and Aurangabad, India, the range delivers up to 2,500 kVA of standby power and 2,250 kVA of prime power.The 61-litre V16 engine delivers 1,400–2,500 kVA at 50 Hz for base load, prime and standby applications. Designed for power generation, it supports critical infrastructure, including data centres, hospitals, airports and remote worksites.Engineered to meet ISO G3 and NFPA110 standards, the 5016 incorporates..

Next Story
Real Estate

JAPAN BUILD Tokyo 2026 Expects 35,000 Visitors

RX Japan GK will organise the 11th edition of JAPAN BUILD Tokyo at Tokyo Big Sight from 2–4 December 2026, with approximately 35,000 visitors expected from the building, construction and real estate sectors.The exhibition will bring together manufacturers, developers, contractors, architects, distributors and property owners. According to the organiser, 51.2 per cent of visitors hold managerial positions or above, providing exhibitors with opportunities to engage with procurement decision-makers. The previous edition attracted 33,618 visitors and 548 exhibitors.JAPAN BUILD Tokyo will feature..

Next Story
Infrastructure Urban

Magma Signs LOIs Worth Over Rs 8 Bn Across Industrial Businesses

Magma has signed Letters of Intent (LOIs) worth more than Rs 8 bn across its advanced materials, waste management, precision engineering and digital industrial solutions businesses.The company expects to execute around 70 per cent of the current LOI pipeline during FY27, providing visibility for the remainder of the financial year. The pipeline reflects rising demand from enterprise manufacturers and deeper engagement across Magma’s customer relationships.India’s industrial B2B trade is estimated at around USD 2 trillion. In precision engineering, imports account for 60-65 per cent of high..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code