Ajay Piramal Group has signed a non-binding agreement with Ramky Infrastructure in a bid to purchase three of its highway projects. The projects include Hyderabad Ring Road, Sehore Kosmi Tollways and NAM Expressway. Piramal group plans to buy 51 per cent stake in this projects.
Two highway projects for widening of roads in Bihar, Jharkhand and Odisha have been approved by the Union government at an expenditure of Rs 5,652.03 crore. The projects approved by the Cabinet Committee on Economic Affairs (CCEA) included Rs 2,015.60 crore scheme for widening of Patna-Gaya-Dobhi section in Bihar and Rs 3636.43 crore project for Baharagora-Sambalpur stretch in Odisha and Jharkhand, an official statement said.
With the Prime Minister’s Office stepping in to resolve the row between the National Highways Authority of India (NHAI) and the Ministry of Environment and Forests (MoEF) over forest clearances to highway projects, the NHAI has communicated that the ball is now in the ministry’s court.
In a bid to prevent the exodus of private road contractors from highway projects, the Union government plans to extend the time required for road contractors to achieve financial closure. This is in case there is a delay in getting the required government clearances.
Troubled by the decision of two leading developers to walk out of two large road contracts, key ministries led by the Prime Minister's Office have initiated a damage control exercise to ensure that other private developers do not follow suit, leaving behind a raft of halfbuilt highway projects.
Country-wide highway projects worth over Rs 1,900 crore have found no takers even though these are based on the annuity model under which the concessionaire recovers a fixed amount of the investment from the government each year, a situation that officials say reflects the severe financial crunch in the private sector. The projects, for four-laning 177 km along NH-37 in Assam, are part of the Special Accelerated Road Development Programme in the North East approved by the Cabinet earlier this mo