Ficci panel urges govt to pay interest of delayed road projects to banks

In a bid to fast-track highway projects, industry body Ficci Monday urged the government to help the Build-Operate-Transfer (BOT) and Engineering, Procurement and Construction (EPC) concessionaires in the road sector by paying directly to banks for the interest accrued on loans by them in the delayed projects.

Many highway projects under the BOT and EPC mode are turning into NPAs due to heavy interest burden on account of delays in projects, Ficci’s National Committee on Transport Infrastructure said in a statement.

According to K K Kapila, Co-chairperson Ficci’s National Committee on Transport Infrastructure, major BOT and EPC contracts in the country have suffered substantial delays on account of land acquisition, utility clearances and environmental clearances, which are solely attributable to government authority.