TWO IMPORTANT AGREEMENTS WITH STATES MAKE ROAD PROJECTS MORE BANKABLE

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TWO IMPORTANT AGREEMENTS WITH STATES MAKE ROAD PROJECTS MORE BANKABLE Today, Kamal Nath took a further step to reach the ambitious goals to develop infrastructure projects he set when he assumed his new role in the government:HELP TO CONCESSIONAIRES TO EXECUTE LAND ACQUISITIONThe ministry of road transport and highways has inked support pacts on land acquisition for highway construction with 20 states. Also, some six states have evidenced interest in signing the agreement with the Central government.Six states, namely Delhi, Gujarat, J&K, Meghalaya, Nagaland, and Tamil Nadu have shown interest, but have not yet signed the agreement. West Bengal, Goa, Mizoram, and Puducherry have not responded to the ministry's proposal to sign such an agreement," said a ministry official, on condition of anonymity.The agreement empowers the concessionaire with access to the site and right of way in accordance with the provisions of the respective concession agreements without hindrance from any government agency or person claiming it.STATES AGREE NOT TO BUILD PARALLEL ROUTESSimilarly, the state government too, agrees not to construct any additional toll way except as provided in the concession agreements.These are good very news for the industry as revenue become more predictable and thus projects become more bankable.

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