18 road projects in FY12 yet to get financial closure: govt

Problem mainly due to non-availability of funds with the financial institutions

As many as 18 highway projects awarded in 2011-12 have not received financial closure, mainly due to non-availability of funds with the financial institutions, Parliament was informed today.

"Out of the 32 national highway projects awarded during 2011-12, 18 projects have not succeeded in obtaining the financial closure," Minister of State for Road Transport and Highways Sarvey Sathyanarayana said in a written reply to the Lok Sabha.

"There has been slowdown due to lack of equity with the concessionaires, unavailability of debt with the financial institutions and stringent stipulation introduced by the Ministry of Environment and Forests," he said.

The Minister added that non-availability of aggregate funds and imposition of conditional ban on digging earth has created additional problems. This is in addition to the existing issues of land acquisition and utility shifting.

In reply to another query, he said the government has enacted the Control of National Highways (Land and Traffic) Act, 2002.

The provisions for the Act provide for prevention of unauthorised occupation of highway land and also removal of unauthorised occupation as the the procedure laid out in the Act.