NEW DELHI: The National Highway Authority of India (NHAI) has requested the Central government to find early resolution of the crisis involving Infrastructure Leasing & Financial Services Ltd (IL&FS) as many highway projects are stuck due to the mess.
According to sources in the Ministry of Corporate Affairs (MCA), NHAI officials have flagged their concerns regarding six-to-seven major highway projects, which they fear may miss the deadline.
“The NHAI last week had raised their concern, as till date, there is no clarity over the fate of the ongoing IL&FS projects. They have already expressed their interest in buying the incomplete projects, but now, more than a month have passed. Fearing more delay, they have requested an early resolution plan, since six-to-seven ongoing highway projects are stalled and are feared to miss deadlines,” said a senior MCA official.
Last month, after superseding the Board of the debt-ridden IL&FS, the government had assured that all national highway projects being executed by the beleaguered company will be completed within specified timelines. However, sources in NHAI claim that six-to-seven projects are still stuck for want of clarity.
“We can’t let the infrastructure sector suffer because of this (IL&FS fiasco). It could lead to a pre-2014 situation, when around 400 important highway projects got stuck because the government of that time was not willing to come out with a solution,” Roads and Highways Minister Nitin Gadkari had commented then.
IL&FS and its various associate companies and subsidiaries are undertaking several national highway projects worth at least Rs 15,000 crore. They include the 14.2 km Zojila tunnel project, deemed as the country’s longest road tunnel in Kashmir.
Equity purchase
Tripura government will soon start dialogue for purchase of 26% equity shares of the 726.6 MW gas-based Palatana gas thermal power project from IL&FS.