NHAI to give Rs 6k cr to developers

In a bold step, government has asked departments, ministries & public sector entities to release 75 percent of disputed amount where developer has won an arbitration case.
  
According to media reports, National Highways Authority of India (NHAI) plans to release Rs 6,000 crore to developers stuck in litigation under the new policy announced at the end of last month. This measure will help banks recover some stuck loans even as the stalled projects will also be provided funds.

This policy, piloted by Niti Aayog can be effective if implemented quickly. Interesting to note here is that at present almost 123 dispute cases worth Rs 25,000 crore are pending with NHAI. Out of these almost Rs 13,000 crore worth of tenders are awarded in favour of private parties.

The solution provides something for everyone as almost 20 developers are expected to benefit from such a policy statement. The developers in turn are expected to pay a part of the amount to bankers as repayment of loans. A certain portion will be used for completing stalled projects.

A master stroke policy thus aims at reducing stress in the banking system and will provide capital to restart infra investment.