New Delhi, Aug 27 (KNN) In the backdrop of capital stuck in the infrastructure sector, the Cabinet Committee on Economic Affairs (CCEA) gave its nod to full equity divestment after two years of completion of construction of all Build-Operate-Transfer (BOT) projects.

“The CCEA, chaired by the Prime Minister Narendra Modi has amended its earlier approval dated 13th May, 2015 for permitting 100 percent equity divestment after two years of construction completion for all BOT projects, irrespective of year of award,” according to an official statement.

This approval will allow concessionaires or promoters to use the proceeds from the sale of divested equity in any other highway or power sector projects.
 
The proceeds can also be utilised in incomplete National Highways Authority of India (NHAI) projects. They can also retire their debt to financial institutions in any other infrastructure projects.
 
“This will result in physical completion of languishing infrastructure projects. This in turn will bring relief to citizens /travellers in the concerned area,” the statement added.
 
The main objective of the approval is to expedite the award and implementation of highway projects by making additional funds available for investment.

Consequently, it will facilitate uplifting socio-economic condition of the entire nation due to increased connectivity across the length and breadth of the country. This will also lead to enhanced economic activity. (KNN Bureau)