The Union Cabinet today formed a three-member committee to discuss the policy on allowing early exit for road developers. The committee will have roads minister CP Joshi,finance minister P Chidambaram and deputy chairman of Planning Commission,Montek Singh Ahluwalia as members.
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The road transport ministry feels that providing easy exit for road developers would allow them to focus on bidding and developing other road projects. Currently,in public-private partnership project,a road developer has to stay with a project till the concession period,which is as long as 27 years.
Earlier,the finance ministry had objected to the proposal of the road transport ministry. The finance ministry opposed saying that the relaxation could result in a strong nexus between developers and operations and maintenance companies.