Government revives proposal that gives developers an easier exit from road projects
In an apparent attempt to encourage the participation of the private sector in construction of roads, a proposal has been revived by the government to facilitate the developers in selling off their stakes in road projects.
According to the information shared by two unidentified officials of the Roads Ministry, the proposal revived by the government will give developers of road projects an easier exit from the projects they undertake.
The officials said that the Roads Ministry is mulling the revival of the proposal which will allow developers of completed road projects to dispose off their stake without forming a new special purpose vehicle (SPV) — a stipulation laid down in the last change made to the exit policy in June 2013.
The officials revealed, on the condition of anonymity, that the proposal has been revived by Nitin Gadkari when he took charge as the new minister for road transport, highways, and shipping.
One of the officials said concessionaires are being consulted again by the Roads Ministry to get their opinion on reviving the exit proposal without forming a new SPV; and added that – upon receiving the concessionaires’ views – the Roads Ministry will then “prepare a draft to be sent to the minister for his approval.”
Source – Mint
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