WebSify
Follow us on
Mail
Print

NHAI extends funding deadline for 4 projects

Source : BUSINESS_STANDARD
Last Updated: Fri, Dec 07, 2012 21:00 hrs

pFaced with a deluge of projects failing to achieve financial closure the National Highways Authority of India NHAI has given a breather to four companies on the verge of losing their contracts This is probably the first time NHAI has taken such a lenient view by extending the 300-day deadline for financial closure in a project after it was awarded According to officials 45 projects many awarded on a premium last year are yet to achieve closure Half of these are already in the grace period of 120 dayspp&ldquoOne reason for the extension is the highway authority&rsquos admission that it has been unable to do the needful in these cases&rdquo said an official NHAI is required to facilitate a number of clearances for the projects which in these cases have been pendingppFour highway projects two in Kerala and one each in Rajasthan and Odisha comprising close to 400 km of highways have been given the extension Senior government officials said the aim was to get some room for the various sovereign clearances required They said this was the only hurdle for the concessionaires in getting the financial closurebr br table cellpadding2 width387 tbody tr styleheight 15pt height20 td styleheight 15pt mso-ignore colspan width341 bgcolorccd7dd colspan4 height20font faceTahoma size2strongBREATHER FOR FOURstrongfonttd tr tr styleheight 15pt height20 td styleheight 15pt width116 bgcolor95acb3 height20font faceTahoma colorffffff size2strongProjectstrongfonttd td width61 bgcolor95acb3font faceTahoma colorffffff size2strongLengthstrongfonttd td width100 bgcolor95acb3font faceTahoma colorffffff size2strongConcessionairestrongfonttd td width64 bgcolor95acb3font faceTahoma colorffffff size2strongAwardedbr yearstrongfonttd tr tr styleheight 15pt height20 td styleheight 15pt width116 bgcolorccd7dd height20font faceTahoma size24-laning offontbr font faceTahoma size2Kannur Vengalemspan stylemso-spacerun yes br spanfontfont faceTahoma size2Kuttipurambr fontfont faceTahoma size2Package -IIfonttd td width61 bgcolorccd7ddfont faceTahoma size28150 kmfonttd td width100 bgcolorccd7ddfont faceTahoma size2KMCspan stylemso-spacerun yes br spanfontfont faceTahoma size2Construction Ltdfonttd td width64 bgcolorccd7ddfont faceTahoma size22010-11fonttd tr tr styleheight 15pt height20 td styleheight 15pt width116 bgcolorccd7dd height20font faceTahoma size24-laning ofspan stylemso-spacerun yes spanbr Kannur Vengalemspan stylemso-spacerun yes br spanfontfont faceTahoma size2Kuttipuramspan stylemso-spacerun yes br spanfontfont faceTahoma size2Package -Ifonttd td width61 bgcolorccd7ddfont faceTahoma size28320 kmfonttd td width100 bgcolorccd7ddfont faceTahoma size2KMCspan stylemso-spacerun yes br spanfontfont faceTahoma size2Construction Ltdfonttd td width64 bgcolorccd7ddfont faceTahoma size22011-11fonttd tr tr styleheight 15pt height20 td styleheight 15pt width116 bgcolorccd7dd height20font faceTahoma size2Panikholi-br fontfont faceTahoma size2Rimolifonttd td width61 bgcolorccd7ddfont faceTahoma size210600 kmfonttd td width100 bgcolorccd7ddfont faceTahoma size2Gayatri Projectsspan stylemso-spacerun yes br spanfontfont faceTahoma size2Ltdfonttd td width64 bgcolorccd7ddfont faceTahoma size22011-12fonttd tr tr styleheight 15pt height20 td styleheight 15pt width116 bgcolorccd7dd height20font faceTahoma size2Kota - Jhalawarfonttd td width61 bgcolorccd7ddfont faceTahoma size28809 kmfonttd td width100 bgcolorccd7ddfont faceTahoma size2Ketispan stylemso-spacerun yes br spanfontfont faceTahoma size2Constructions Ltdfonttd td width64 bgcolorccd7ddfont faceTahoma size22011-12fonttd tr tbodytableppThe extension has been given informally by &ldquoNHAI not terminating the contract even after 300 days&rdquo though no specific timeframe has been fixed yet for achieving financial closure the official saidppAccording to M Murli of the National Highways Builders Federation it takes 18 to 24 months to get all the clearances for a road project He said financial closure was getting tougher because lenders had become more cautious and demanded that all clearances be in place A company gets 180 days to tie up funds for a project If unable to do so it gets a grace period of 120 days with a penalty If still unable the project award is cancelled It is either rebid or awarded to the second lowest bidderppEarlier this year NHAI cancelled the award of two projects of about Rs 2450 crore awarded last year to DSC Ltd and Gannon-Dunkerley Co The concessionaires failed to achieve financial closure in the prescribed 300 daysp


blog comments powered by Disqus
most popular on facebook
talking point on sify finance