Govt sets Feb 15 deadline for stuck road projects

Q: The government has set a deadline of Feb 15 to resolve the issues blocking highway projects worth Rs 30000 crore, including fund crisis.

Anuj Gupta, Mumbai

1st February 2016

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For your knowledge, i would like to tell you that these projects relate to key national highways in Andhra Pradesh, Bihar, Haryana, Rajasthan, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Tamil Nadu, Uttarakhand and West Bengal.

Nikita Mishra, Delhi

1st February 2016

Comment

Yes, and the stuck projects belong to players like Larsen & Toubro, HCC, Gammon, Madhucon, Soma and Essel Ifra, among others, while the list of lenders includes top names like SBI, Punjab National Bank and Bank of India.

Promit Dutta, Kolkata

1st February 2016

@Nikita,
This include Panvel-Indapur stretch in Maharashtra, financed by State Bank of India where the developer does not have equity of Rs 40 crore to access Rs 157 crore of lending.

Another project facing termination threat. It relates to Rohtak-Jind section in Haryana where fund diversion is suspected.

Yet another project facing termination threat is Rimoli-Roxy-Rajamunda stretch in Odisha where developer wants cost hike and extension.

Apurva Nagpal, Pune

1st February 2016

Comment

Hi Apurva,
But when the Narendra Modi government took control of the government, there were as many as 384 stuck highway projects on account of issues like land acquisition, delay in forest and environment clearances, litigation, equity crisis etc. It means rest of the stuck projects have been resolved.

Praveen Modi, Mumbai

1st February 2016

I think so Praveen.
BJP Govt. efforts led to rolling out of majority of the 384 projects while they had to terminate 41 schemes. Of the remaining 21 slow projects, issues have been solved for seven while they are confident to resolve issues with remaining 14 within 15 days.

Apurva Nagpal, Pune

1st February 2016

I heard that banks were happily over-financing highway projects and effectively killed them and if developers and bankers fail to reform their ways and start measures to roll out projects, the government will start terminating these.

Praveen Modi, Mumbai

1st February 2016

Hi Anuj,
These projects are stuck due to various issues such as land acquisition, forest and environment clearances, railway over-bridge problems, utility shifting, litigations, delayed decisions and financial problems.

Apurva Nagpal, Pune

1st February 2016

Comment

Right Apurva,
The is assuming that 14 projects worth Rs 30000 crore are still stuck in spite of a meeting of bankers and developers last week to arrive at a solution and with some of these facing termination. Now, they have set a deadline of 15 days to solve all issues.

Nikita Mishra, Delhi

1st February 2016