NHAI allows 100% divestment of shareholding of contractors

In a move aimed at speedy construction of highways, the National Highways Authority of India (NHAI) has allowed 100 per cent divestment of shareholding of the concessionaire of the 4-laning of highway project Ulundurpet – Padalur section of NH-45 in Tamil Nadu. This is the first initiative of its kind in which the existing shareholder IJM Trichy (Mauritius) Limited, and Shapoorji Pallonji have been permitted to divest their equity in favour of <g data-gr-id="15">Macquire</g> SBI Infrastructure Investments and SBI Infrastructure Trust Roads. 

The Centre had recently permitted 100 per cent equity divestment after two years of completion for all BOT projects to unlock the capital stuck in the highway sector. The move was aimed at fast-tracking contracts and implementation of more highway projects in the country by making additional funds available for investment. 

“The move will allow highway developer to invest proceeds from the sale of divested equity in incomplete projects or to retire their debt to financial institutions. This will result in physical completion of languishing infrastructure projects."