Big shots investing in roads

image for Pune By Accommodation Times News Service

It seems that many global funds and equity investors are making their entry investing in the highway sector , a move that will help thousands of crores for Indian developers- funds that were held up in the absence of a government decision to allow existing players to exit immediately after completing the projects. According to the sources Uniquest Infra Ventures the joint venture between Malaysian govt. sovereign wealth Khazanah Nasional Berhad and IDFC has expressed interest in buying stake in nearly a dozen of projects. SBI Macquarie Infrastructure Fund has discussed the possibility of investing up to Rs 20,000 crore in projects. Tata Realty is eyeing four projects while, Morgan Stanley is entering the space too.

For projects awarded after 2009, there has been no restriction on companies to buy inyo projects that have been in operation for 2 years. The National Highways Authority of India (NHAI) is now pushing for allowing developers to offload equity as soon as the project is completed. The change is being pushed in such a manner which will impact projects awarded before 2009.

Just when NHAI got all the government agencies to agree to move the department of economic affairs put a spanner but sources said it has been over-ruled by FM P Chidambaram. As of now the highway developers are awaiting the final guidelines before going ahead with the transactions.

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