India to Ease Road Project Investment
Sept. 3 – The Indian government has resolved to make investment in its road construction projects easier by streamlining the process by the end of the month.
Transport Minister Kamal Nath was quoted by The Economic Times as saying during an infrastructure road show in London this week that various irritant clauses in the concession agreement and other documents would be modified.
India aims to complete 7,000 kilometers of road construction yearly, a goal that would need US$70 billion of funding in the following 3 to 4 years. Majority of the projects, or around 60 percent will be on a build-operate-transfer mode while US$45 billion of investment is expected to come from the private sector.
Complicated issues pertaining to termination clause, exit clause and conflict of interest during in the bidding process for roads projects will also be streamlined.
Nath said that investor concerns like determination of realistic total project cost, faster dispute resolution mechanism, longer concession periods and change in Companies Law to make Special Purpose Vehicles more attractive, are being studied for revision.
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