New Delhi :  FICCI’s National Committee on Transport Infrastructure has urged the government to help the Build-Operate-Transfeer (BOT) and Engineering ,Procurement and Contruction (EPC) concessionaires in the road infra sector by paying directly to banks for the  interest accured on loans by them in the road infra delayed projects .

“The Union government in its recent budget had announced that the public sector banks (PSBs) will be provided with a capital infusion of Rs 70,000 crore, giving a much-needed boost to the stressed banks who are under pressure owing to the rising Non Peforming Assets (NPA’s) . But several the Build-Operate-Transfeer (BOT) and Engineering ,Procurement and Contruction (EPC) contractors are becoming NPA’s due to heavy interest burden accured by them due to delay of projects “ said Mr K K Kapila, Co-chairperson , FICCI’s National Committee on Transport Infrastructure.

“Major  BOT projects / EPC contracts in the country  have suffered substantial delays on account of land acquisition, utility clearances and environmental clearances, which are solely attributable to the Government Authority. Whereas, Extension of Time is being granted by the Government Authority, but the interest accrued on the loans given by the Banks, for such delayed period, has resulted in the Bank accounts of the Concessionaires / EPC Contractors becoming NPA. As a result, the Banks are unable to further service funds to such projects inordinately delaying their completion.” Said Mr Kapila.

“We urge the government that in such delayed BOT projects / EPC contracts, interest accrued during the delayed period for which Extension of Time has been granted, where delays are not attributable to the Concessionaires and EPC Contractors, the Interest during such Extended Period could be directly given to the Banks from the budgetary allocation of capital infusion of Rs 70,000 crore.  This  would then prevent the accounts of the Concessionaires / EPC Contractors from becoming NPA.” Mr Kapila said.

 “This will also help in opening a window for further funding of the projects leading to their completion. This would also help in completing several delayed BOT projects / EPC contracts and in  reviving  the highway sector, as well as provide necessary funding to the banks. As this liability is clearly that of the Government this action will also help create right environment for further BOT Projects and help to attract funds from overseas for such projects as well.” He added.