Government approves exit policy for roads sector
The government has approved a exit policy for the roads sector, allowing developers to quit a project two years after completion, a measure that will help the stressed sector monetise assets and unlock the capital for future projects. The Cabinet also allowed the NHAI to inject funds in languishing projects on a loan basis at a pre-determined rate of return, which will help complete such projects. The CCEA allowed highway developers to divest 100% stake two years after completion. The exit policy will harmonise the conditions uniformly across all concessions signed prior to 2009 with the exit policy framework of post 2009 contracts. About 80 projects bid on the BOT basis with a locked in equity of Rs 4,500 crore are likely to benefit from this policy.