A whopping Rs 26,556 crore is embroiled in disputes involving highways projects, the government today said.
"Debt to road sector was being classified as unsecured by lenders and due to overall sectoral ceiling, availability of debt to road sector was low. The total amount pending in dispute is Rs 26,556.40 crore," Minister of State for Road Transport and Highways Krishanpal Gurjar said in a written reply to Lok Sabha.
He was responding to whether banks are reluctant in financing highway projects due to disputes between NHAI and private players.
Gurjar also said the government was taking a slew of measures to revive sector.
"On the instance of the Ministry of Road Transport and Highways and the Ministry of Finance, Reserve Bank of India (RBI) has now advised all scheduled commercial banks to treat road sector debt as secured within the limits of 90 per cent of debt due enabling banks to allocate a larger portion of lending to road sector and also to reduce the cost thereon," he said.
Last week, Transport Minister Nitin Gadkari had said road sector "alone accounts for Rs 2,40,000 crore NPAs (non performing assets) by banks."
He announced that stalled highways projects worth Rs 1,80,000 crore will be rolled out by August 15 after ironing out hurdles and he would hold a meeting with chiefs of banks to solve issues relating to financing.
He has blamed the previous regime for award of projects "without acquiring even 10 per cent of the required land" and causing hardships for road sector and said, "Work could not start on the projects where financial closure took place two years back. Banks withdrew financial closure."
India has about one lakh km of National Highways.
