Long-term lenders like IIFCL and IDBI Bank are unlikely to fund road projects where land acquisition is incomplete, a move that could scuttle plans to award projects of 8,000 km this fiscal year. Lenders and builders have approached the finance ministry, road ministry and NHAI, insisting that road contracts should not be awarded without all clearances in place.
“We are not taking up new projects unless 100% land acquisition is done. We are taking up the issue with NHAI,” IIFCL chairman SK Goel told FE. “We feel other lenders will follow suit,” he added.