 "Infrastructure")
Settlement of arbitration claims by infrastructure developers is slow because of the inability of road developers to provide bank guarantees and open escrow accounts, according to India Ratings and Research (Ind-Ra).
The government’s initiative to release 75 per cent of the locked amount in arbitration awards has had a limited impact on the liquidity of developers as banks are wary of taking exposure through bank guarantees without adequate margins or collateral.
Ind-Ra said non-submission of bank guarantees despite reminders by the National Highways Authority of India (NHAI) and non-opening of escrow accounts were the key deterrents to the success of
