Government close to finalizing a bailout package for road developers

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    The government is close to finalizing a bailout package for road developers
    The government is close to finalizing a bailout package for road developers

    The government is close to finalizing a bailout package for road developers. A committee headed by C. Rangarajan, chairman of the Prime Minister’s Economic Advisory Council, is likely to recommend the restructuring of a portion of the premium commitment of a developer and order traffic studies of projects to determine their eligibility for availing of the relaxation under this policy.

    For six laning of highway projects, the committee is likely to allow restructuring of 75% of the road developer’s premium commitment for the first three years during construction and 50% of the premium for the remaining years. The developers will be required to provide a bank guarantee in lieu of the relaxation. For four laning of highway projects, the restructuring of premium payments will begin after the completion of construction.

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