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Construction : Web Exclusive | May 2013 | Source : Construction Update

Centre to allow 100 per cent stake sale in BOT projects

Infrastructure developer IVRCL is going slow on its proposal to monetise three more build, operate and transfer (BOT) projects in the light of expectations that the Union government will soon take a decision to allow 100 per cent stake sale in BOT projects. It is just a matter of procedure. The decision will come soon as everybody, including the NHAI (National Highways Authority of India), is in favour of it, IVRCL Chairman and Managing Director, E Sudhir Reddy, said.

At present, the Centre allows only 74 per cent stake sale in BOT projects. Reddy said IVRCL would expedite the process of selling more projects after Centre's decision in this regard. The Hyderabad-based company recently sold three BOT projects - Salem Tollway, Kumarapalayam Tollway and IVRCL Chengapally Tollway - to the Tata group firm TRIL Roads.

The stake sale is yet to be approved by the NHAI and institutional lenders. The projects have been reportedly executed at a cost of Rs 2,200 crore and nearly two-thirds of this money had been lent by banks. Reddy, however, said banks approving the stake sale should not be a problem as the projects were sold to a Tata group company, which has a good standing among the financial institutions.

 
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