Banks to fund NHAI projects with 80% land

The Department of Financial Services of the Union Finance Ministry recently conveyed to bank CEOs that they could finance PPP road projects if the NHAI acquired at least 80% of the land required for a project. Simultaneously, under the new rules, developers are allowed to collect toll after 75% completion of a project. The move is expected to ease financing for around 30 highway projects that were awarded in 2011-12 and 2010-11, but which have not progressed further due to lack of funds. India Infrastructure Finance Company Limited, one of the major financers, has recently started disbursing loans for NHAI projects that meet the new land acquisition requirements.