First divestment under exit policy for highways

The move will allow highway developer to invest proceeds from sale of divested equity in incomplete projects

The National Highways Authority of India (NHAI) has allowed 100% divestment of shareholding of the concessionaire of the 4-laning of highway project Ulundurpet - Padalur section of NH-45 in Tamil Nadu. 

This is the first initiative of its kind in which the existing shareholder IJM Trichy (Mauritius) Limited, and Shapoorji Pallonji have been permitted to divest their equity in favour of M/s Macquire SBI Infrastructure Investments Pvt. Ltd. and SBI Infrastructure Trust Roads Pvt. Ltd.

The move will allow highway developer to invest proceeds from the sale of divested equity in incomplete projects or to retire their debt to financial institutions. This will result in physical completion of languishing infrastructure projects. It is expected that large number of developers are likely to be benefited by this opportunity for circulation of funds in infrastructure sector.

Recently, in order to unlock the capital stuck in the highway sector, the Government had permitted 100% equity divestment after two years of completion for all BOT projects. This move was aimed at fast-tracking contracts and implementation of more highway projects in the country by making additional funds available for investment.