Relief expected to road infra majors in paying premiums
ROADS & HIGHWAYS

Relief expected to road infra majors in paying premiums

The Union government may allow road construction companies, which have taken up highway projects, to restructure the payment of premium amount to be paid to it (the government). Hence infrastructure majors, including L&T, IRB, GVK and GMR, can expect relief in executing highway projects, which they have bagged by quoting high premium - upfront revenue to the government - a year ago.

The Union Highways Ministry would put forth a proposal before the Cabinet soon that would allow the companies to restructure the payment of premium amount. The Ministry is likely to push the proposal after the National Highway Authority of India (NHAI) board has cited that big-ticket projects are not taking off due to changed market condition, where private developers are facing difficulty to raise equity.

If the proposal gets the government's nod, at least a dozen projects would benefit. All these projects were bagged by developers quoting over Rs 30 crore annual premiums. Recently, the NHAI board had considered the case of GMR to restructure the annual premium payment of Rs 636 crore to make the execution of Kishangarh-Udaipur-Ahmedabad project viable.

The Union government may allow road construction companies, which have taken up highway projects, to restructure the payment of premium amount to be paid to it (the government). Hence infrastructure majors, including L&T, IRB, GVK and GMR, can expect relief in executing highway projects, which they have bagged by quoting high premium - upfront revenue to the government - a year ago. The Union Highways Ministry would put forth a proposal before the Cabinet soon that would allow the companies to restructure the payment of premium amount. The Ministry is likely to push the proposal after the National Highway Authority of India (NHAI) board has cited that big-ticket projects are not taking off due to changed market condition, where private developers are facing difficulty to raise equity. If the proposal gets the government's nod, at least a dozen projects would benefit. All these projects were bagged by developers quoting over Rs 30 crore annual premiums. Recently, the NHAI board had considered the case of GMR to restructure the annual premium payment of Rs 636 crore to make the execution of Kishangarh-Udaipur-Ahmedabad project viable.

Next Story
Building Material

JSW Paints to Acquire Majority Stake in Akzo Nobel India

JSW Paints has signed definitive agreements to acquire up to 74.76 per cent stake in Akzo Nobel India Limited (ANIL) from Akzo Nobel N.V. and its affiliates. The proposed transaction is valued at up to Rs 89.86 billion, subject to closing adjustments. The deal is contingent on approval from the Competition Commission of India and the successful completion of a mandatory open offer to ANIL’s public shareholders. Part of the US$ 23 billion JSW Group, JSW Paints is among the fastest-growing players in India's paint industry. ANIL, a key player in decorative and industrial paints, brin..

Next Story
Infrastructure Energy

Greenko Founders Secure $650 Million Loan to Reclaim Stake

Greenko Energy Holdings co founders Anil Chalamalasetty and Mahesh Kolli have clinched a $650 million private credit facility that will enable them to repurchase 17.5 per cent of the clean energy producer from Japan’s Orix Corp, leaving Orix with a residual 2.5 per cent.The two year loan comes from a consortium of lenders including Keppel Credit, SeaTown Holdings International, BlackRock, Varde Partners, Broad Peak Investment Advisers, Nomura and Sumitomo Mitsui Banking Corp. The transaction is one of India’s largest private credit financings this year, reflec..

Next Story
Infrastructure Energy

Inox Neo Buys Skypower Solar India for Rs 2.65 Billion

Inox Clean Energy’s renewable arm, Inox Neo Energies, has completed the acquisition of Skypower Solar India at an enterprise value of about Rs 2.65 billion. The portfolio comprises a 50 MW (AC) / 57.5 MW (DC) solar plant in Khandwa district, Madhya Pradesh, commissioned in the 2018 financial year and backed by a 25 year power purchase agreement with Madhya Pradesh Power Management Company.Chief Executive Bharat Saxena said the project’s robust operating record makes it value accretive from day one and fits the group’s inorganic growth plan. The firm cont..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?