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The National Highways Authority of India (NHAI) approved the substitution of Gammon Infrastructure Private Limited by Brookfield India Holding Pvt Ltd for the stalled Vijayawada-Gundugolanu road project in Andhra Pradesh and Telangana. The project was approved with a total cost of Rs 1,684 crore.
NHAI observed that the concessionaire was facing financial stress and was unable to meet its obligations under the concession agreement. This initiative is aimed at bringing in fresh investment from Brookfield India Holding Pvt Ltd, a subsidiary of Brookfield Infrastructure Partners LP, an international infrastructure fund that will bring in $100 million as equity investment.
The harmonious substitution of M/s Gammon Infrastructure Private Limited was possible due to the recent policy initiative of the government wherein the concessionaires facing difficulties in implementing PPP projects can be substituted in harmonious manner by a new investor.
