NHAI breather for the stalled Vijayawada-Gundugolanu Project
NHAI today approved the harmonious substitution of M/s Gammon Infrastructure Private Limited by M/s. Brookfield India Holding Pvt. Ltd. for the important Vijayawada-Gundugolanu project in the states of Andhra Pradesh and Telangana, which was stalled. The harmonious substitution of M/s Gammon Infrastructure Private Limited was possible due to the recent policy initiative of the Government wherein the concessionaires who are facing difficulties in implementing PPP projects can be substituted in harmonious manner by a new investor.
The project was approved with a total project cost of Rs 1684.00 Crores. In this case, NHAI observed that the concessionaire was facing financial stress and was unable to meet its obligations under the Concession Agreement. This initiative of NHAI and the Government will help in salvaging this prestigious project by bringing in fresh investment from M/s. Brookfield India Holding Pvt. Ltd. (a subsidiary of M/s Brookfield Infrastructure Partners LP, an international infrastructure fund), who will bring in $ 100 Million as Equity investment .