20/12/2015

Government'sultimatumtoroaddevelopers:PerformorperishTheEconomicTimes

SearchforNews,StockQuotes&NAV's

Youarehere: ETHome News Economy Infrastructure

Government'sultimatumtoroaddevelopers:Performor
perish
PostaComment

ByPTI|20Dec,2015,12.28PMIST

NEWDELHI:Runningoutofpatiencefortheir"lackofcommitmentandlackadaisical
approach",thegovernmenthaswarnednonseriousdevelopersandbankersofterminating
highwayprojectsworthRs20,000crore.
"Theconcessionairesandbankersarenotrealisingthatwearereachingastageof
impatience,andpeoplewhoareusersoftheseroadsarenotgoingtobewaitinganymore,"
RoadTransportandHighwaysSecretaryVijayChhibbertoldPTIinaninterview.
"Ifdevelopersandbankersfailtomendtheirwaysandinitiatecorrectivestorolloutprojects
byJanuaryend,thegovernmentwillstartterminatingcontractsinPPPmodeand
repackagethem."

Thegovernment,itseems,doesn'twanttoleaveanystone
unturnedininitiatingpolicymeasuresandextendingsupport

Outofthetotal77stalledprojects,issueshavebeensortedoutforallbarring19,whichare
stillstuck.
"Ihadameetingwithbankersandconcessionaires.Iamgettingasensetheyhadnot
lookedatthefullpackage...Wearenolongerworkingonanyfurthercorrection,"Chhibber
warned.

whereverrequired.

ETSPECIAL: Lovevisualaspectofnews?Enjoy
thisexclusiveslideshowstreat!

"Enoughisenough,"theseniorofficialsaid,mincingnowords,addingthata30daydeadlinehasbeensetfordevelopersandbankersof
19projectsto"performorgetterminated".
Thesecretary'sremarksassumesignificanceasthehighwaysectorhasbeensaddledwithstuckprojectsworthaboutRs3.8lakhcrore.
Thegovernment,itseems,doesn'twanttoleaveanystoneunturnedininitiatingpolicymeasuresandextendingsupportwherever
required.
Atonepoint,Chhibberhadevenremarkedthataggressivelendingbybanks,whichwere"happilyoverfinancingevennonserious
highwaysplayerswithoutassessingrisks,hasvirtuallykilledthesector".
ThebuildersinthelineoffireincludebigplayerslikeLarsen&Toubro,HCC,Gammon,Madhucon,SomaandEsselIfra,amongothers,
whilethelistoflendersincludestopnameslikeStateBankofIndia,PunjabNationalBankandBankofIndia.
Thegovernmenthasrecently"offeredafullpackage",whichamongotherstepsextendstheconcessionperiodofprojectswheredelays
arenotattributabletodevelopers.
Statingthatthegovernmenthasotherpolicyoptionsatitsdisposaltodealwiththeproblem,Chhibbersaid:"Ifitdoesn'tworkinasetup
forthem,wearequitehappytocanceltheprojectsandrollthemoutinEPCorsomeothermeans.Currently,wedonotfindanystresson
ourliquidity."
TheprojectsrelatetokeynationalhighwaysinAndhraPradesh,Bihar,Haryana,Rajasthan,Jharkhand,Karnataka,MadhyaPradesh,
Maharashtra,Odisha,TamilNadu,UttarakhandandWestBengal.
StayontopofbusinessnewswithTheEconomicTimesApp.DownloaditNow!

LiveMarket

News

OtherTimesGroupnewssites

Portfolio

Mobile

LiveTV

Newsletter

Commodities

Speed

QnA

Livingandentertainment

HotontheWeb

Services

Timescity | iDiva | Bollywood

DailyHoroscope | WeatherinDelhi

Bookprintads | Onlineshopping

Blogs

Alerts

http://economictimes.indiatimes.com/news/economy/infrastructure/governmentsultimatumtoroaddevelopersperformorperish/articleshow/50253830.

1/2

20/12/2015
TimesofIndia |
| MumbaiMirror
TimesNow | Indiatimes
|
| Lifehacker
Gizmodo | Eisamay | IGNIndia
NavGujaratSamay

Government'sultimatumtoroaddevelopers:PerformorperishTheEconomicTimes
Zoom | Luxpresso
OnlineSongs | Travel
Guides | Hotel
Reviews | Cricbuzz.com

MumbaiMap | Horoscope
HotelsinDelhi | XiaomiMobile
Phones

Matrimonial | Astrology | Jobs | Property | Buycar | BikesinIndia

UsedCars | OnlineDeals | RestaurantsinDelhi | MovieShowTimingsin
Mumbai
RemittoIndia | BuyMobiles | ListenSongs | VoiceGreetings | Technology
News | AugmentedReality

Networking
itimes | MensXP.com

Aboutus / Advertisewithus / TermsofUse&GrievanceRedressal / PrivacyPolicy / Feedback / Sitemap / CodeofEthics / Disclaimer

Copyright2015Bennett,Coleman&Co.Ltd.Allrightsreserved.

http://economictimes.indiatimes.com/news/economy/infrastructure/governmentsultimatumtoroaddevelopersperformorperish/articleshow/50253830.

2/2