Govt lets developers divest 100% road project equity after 2 years
28 Aug 2015 5:11 AM IST
The government on Wednesday allowed developers to divest 100 per cent equity in projects two years after the completion of such schemes, a move that can unlock investments worth <g data-gr-id="14">about </g>Rs 4,500 crore in the sector. The decision is aimed at fast-tracking contracts and implementation of highway projects in the country by making additional funds available for investment in projects.
“The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has amended its earlier approval dated May 13 for permitting 100 per cent equity divestment after two years of construction/completion for all BOT projects, irrespective of year of award,” an official statement said after the meeting.
The approval would allow the highway developers to use proceeds from the sale of divested equity in incomplete projects of NHAI or any other road projects besides any power sector projects or to retire their debt to financial institutions in any other infrastructure works, the statement said. “This will result in physical completion of languishing infrastructure projects. This in turn will bring relief to citizens /travellers in the concerned area,” it said.
It added that consequently, it will facilitate uplifting socio-economic condition of the entire nation due to increased connectivity across the length and breadth of the country.
7th pay panel gets 4-month extension
The Cabinet on Wednesday extended by four months the term of the Seventh Pay Commission, which was set up in February 2014 to revise remuneration of some 48 lakh central government employees and 55 lakh pensioners.
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