NHAI allows two developers to divest stake in TN project

With the government allowing developers to divest 100 per cent equity in highway projects, NHAI today said it has allowed two developers to divest their equity in a scheme in Tamil Nadu in favour of Macquire SBI Infrastructure Investments and SBI Infrastructure Trust Roads.
"NHAI has allowed 100 per cent 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) Ltd, and Shapoorji Pallonji have been permitted to divest their equity in favour of Macquire SBI Infrastructure Investments Pvt Ltd and SBI Infrastructure Trust Roads Pvt Ltd," National Highways Authority of India (NHAI) said in a statement.

The move will allow the highway developer to invest proceeds from the sale of divested equity in incomplete projects or to retire their debt to financial institutions, it added.
This will result in physical completion of languishing infrastructure projects.
The government last month allowed developers to divest 100 per cent equity in projects two years after the completion of such schemes, a move that can unlock investments worth about Rs 4,500 crore in the sector.
The decision is aimed at fast-tracking contracts and implementation of highway projects in the country by making additional funds available for investment in projects.