Gadkari wants banks to find ways to fund stalled road projects

TIL Desk/Business/Mumbai/ As more than 56 large road projects are stalled for want of financial closure, Union transport minister Nitin Gadkari today asked bankers to find ways to finance these hybrid annuity model (HAM) projects worth thousands of crores.

The National Highway Authority of India (NHAI) has awarded 104 HAM projects including some during the previous government’s term, but as many as 56 of them are stuck as developers are unable to secure financial closure, Gadkari said after a closed-door meeting with bankers, LIC, an RBI deputy governor and NHAI brass here.

Bankers who attended the meeting include SBI chairman Rajnish Kumar, LIC chairman VK Sharma, Bank of Baroda managing director BS Jayakumar, Union Bank managing director Rajkiran Rai and private sector lenders Uday Kotak and Ramesh Sobti of IndusInd Bank.

“There are 104 HAM projects worth Rs 1.25-1.5 trillion. Of these, 56 are yet to secure financial closure. We want banks to finance them and at today’s meeting we’ve asked banks about their issues in funding these projects,” Gadkari told reporters after the meeting. “I have assured the banks that all their concerns will be resolved,” he added.