A foreign company has exit from road projects

Q: Is there any reason for this exit?

Shailja, Delhi-NCR

15th March 2016

Real estate News in Delhi

road projects

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maharashtra

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uniquest infra ventures

bot project

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Replies (4)

Many companies exit from their projects which is under construction because of property down they have a big loss.

Amit Jindal, Sonipat

18th March 2016

Comment

Hi all,
Many foreign business men in the road sector are still cautious of coming to the country and bidding for projects, considering the experience Indian developers have had so far. There is a bit of confidence issue with regards to greenfield projects.

Santosh TR,

15th March 2016

Comment

Welcum santosh,
Yes, i don't think that foreign players will take much risk soon. Foreign developers invest in US dollars, but their return is in rupee. This might be one of the reason for staying away from infrastructure projects that have a long gestation period.

Kaushik Bardia,

15th March 2016

It is also come to know that Govt. has started hunting for foreign investors organising road shows in countries like Malaysia and China.

As per latest NHAI data, a total of 57 road projects have been awarded during 2015-16 with only 7 being bid out on BOT with the remaining on EPC

Santosh TR,

15th March 2016

Good morning everyone!!!!!
Actually, government called Uniquest Infra at least thrice to sign the agreement for the project. They request for the extend of that and we extended the deadline, but they still did not turn up. As a result, government forfeited their security amount and now planning to invite fresh bids. It is also come to know that the developer has not assigned any reason to National Highway Authority of India (NHAI) for pulling out of the road project.

Kaushik Bardia,

15th March 2016

Comment

Good Morning Kaushik,
This is not the first incident that a foreign company exit in the start of the project. There have been more cases in the past where developers have bid for the projects, but have exit after some time.

Abhishek,

15th March 2016

It is true Abhishek.
Developer exit due to multiple reason including over-bidding. At times, developers find it difficult to explain to lenders as to why the difference between 1st and the 2nd bids were high.

Kaushik Bardia,

15th March 2016

Hi,
There is no reason found for sudden pull out. In May 2015, Uniquest Infra Ventures, which bid for a four-laning project on BOT and bagged the contract . But it is a blow to govt's plan for of attracting foreign firms to build highways.

Abhishek,

15th March 2016

Comment