In order to make more equity capital available for the road sector, in August this year, the Government of India allowed equity divestment up to 100% for all BOT projects irrespective of year of award subject to the condition that such equity divestment shall be only allowed after two years of construction completion and that the equity so divested shall be invested by the promoter in other incomplete NHAI projects.
The Government of India has also allowed an one time fund infusion for road projects which are being implemented under the Build Operate and Transfer (Toll) mode and which has already achieved at least 50% physical completion. This infusion shall be made by NHAI from the corpus earmarked by way of a loan carrying interest at the prevailing bank rate + 2% subject to eligibility of the concerned project. For securing the funds so infused the first charge on the toll receivables of the project would be made in favour of NHAI.
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