NHAI wants PMO's help to save relinquished road projects

The Prime Minister's Office help has been sought by the National Highways Authority of India (NHAI) for salvaging projects abandoned by the developers and starting those projects that have found no takers till now. The Authority's missive comes even as the government has deferred a much-awaited decision to resuscitate stalled highway projects by allowing an easier exit option for road developers.

The issue was part of the Cabinet Committee on Investment's (CCI) agenda on May 23, some ministers in the 19-member panel are learnt to have voiced concerns about making such post-facto changes in highway contracts. The CCI has directed ministries to expedite action on such 'unresolved issues.' Accordingly, the Finance Ministry, Road Ministry and the Planning Commission will discuss a mutually agreeable solution.

NHAI has been seeking relaxations in highway contracts to create liquidity for cash-starved infrastructure developers who have been unable to find investors due to legal hassles and stuck with high-cost debt, which makes projects unviable.