There’s some good news for highway developers. Banks can now start lending to public-private partnership (PPP) road projects if at least 80 per cent of the land is made available by the national highways authority. Till now, lenders had been insisting that the developers take complete control of the land before getting funds.
The Department of Financial Services has conveyed this to bank chief executive officers, after a decision was taken by the Committee of Secretaries, an inter-Ministerial group, multiple sources in the know confirmed to Business Line.
The move is likely to ease funding for highway developers, especially on PPP projects. In highway development projects, the National Highways Authority of India (NHAI) acquires the land and makes them available to developers.
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