Up to seven projects of India's National Highways & Infrastructure Development (NHIDCL) have been slowed down by highway operators unable to secure the necessary funds.
These highways are part of a number of highway projects currently taken up by NHIDCL, with a total budget of around Rs350bn ($5.49bn).
The amount has been allocated towards the construction of around 2,000km of roads and highways at multiple locations of the north-eastern and other bordering areas of strategic importance.
NHIDCL director (A&F) Sanjay Jaju told PTI: "Of the ongoing 75 projects, there are six to seven such projects where contractors are unable to arrange 10%-15% of the working capital, creating hurdles for the projects."
Before awarding projects to bidders, NHIDCL ensures that 90% of formalities related to land acquisition has been achieved.
Jaju added that only those contractors who have raised funds for working capital should bid for winning roads and highways projects. Jaju also noted that certain projects are turning out to be poorly performing ventures as contractors have been unsuccessful in generating working capital, which has halted works for projects.
A number of contractors have reportedly failed on their commitment to complete the projects within the deadline agreed at the time of awarding them.