India approves 100 % equity divestment after two years of completion for all BOT projects
The Indian Cabinet Committee on Economic Affairs has approved 100 % equity divestment after two years of construction completion for all build-operation-transfer (BOT) projects, irrespective of year of award.
The approval would allow the concessionaires to use proceeds from the sale of divested equity in one or more of the following:
- Incomplete National Highway Authority of India projects.
- Any other highway projects.
- Any other power sector projects; and
- to retire their debt to financial institutions in any other infrastructure projects.
This will result in physical completion of languishing infrastructure projects. This in turn will bring relief to citizens /travellers in the concerned area.
The main object of the approval is to expedite award and implementation of highway projects in the country by making additional funds available for investment in projects. Consequently, it will facilitate uplifting socio-economic condition of the entire nation due to increased connectivity across the length and breadth of the country. This will also lead to enhanced economic activity.
We have recently reported on several PPP projects in India:
Country news
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