Many developers can't support huge equity investments that are part of BOT projects, the rating company said.
Founded Kenya National Highways Authority KeNHA Kenya National Highways Authority KeNHA is an autonomous road agency, responsible for the management, development, rehabilitation and maintenance of international trunk roads linking centres of international importance and crossing international boundaries or terminating at international ports Class A roadnational trunk roads linking internationally important centres Class B roadsand primarily roads linking provicially important centres to each other or two higher-classroads Class C roads.
Their Mission To construct and manage national trunk roads that enhance socio-economic growth and prosperity.
Their Mandate To Manage, develop, rehabilitate and maintain national roads. Data due Friday will probably show India's gross domestic product expanded 5.
NHAI's outstanding debt of 1.
Ratings company ICRA on Wednesday said the build up of debt means NHAI must either go slow on new projects -- a choice Modi can't afford as he needs to spur economic growth -- or shift to a build-operate-transfer model involving equity-purchases by private players.
The decision is a reversal from Modi's first term, when his administration was praised for its breakneck speed of highway construction that helped make India one of the fastest-growing economies in the world.
However this came with the burden of escalating costs, leaving NHAI increasingly dependent on the government for financial support at a time when Modi is looking to contain his budget deficit. Road infrastructure has become financially unviable. Ensuring that the quality of roads works is in accordance with such standards as may be defined by the minister.
They'd construct the roads, collect toll from users and then would transfer ownership back to NHAI after an agreed period.