Roads: Revised exit policy on Cabinet table soon

The revised policy provides for the exit of private developers of projects awarded both before and after 2009.

The revised exit policy for private developers in the roads sector is likely to be sent to the Cabinet, after the cabinet secretariat finishes its review of the document, within the next seven days.

“We sent the draft 15 days ago to the cabinet secretariat for inter-ministerial consultations. We are expecting to hear from them soon. Once we have their comments, the note will be sent to the Cabinet for a final decision,” an official of the roads ministry said.

The revised policy provides for the exit of private developers of projects awarded both before and after 2009, through a stake sale, two years after the commissioning of the project. Industry experts, however, continue to nurse apprehensions regarding the policy claiming it will not change much on the ground.
“Many operational projects are not generating sufficient revenues, and several under construction could be in the same state once commissioned. But if the financial challenges are addressed, the exit policy will make it easier for new investors to come in,” said Manish Agrawal, leader (infrastructure) PwC.