Chief executives of infra firms say the government’s traffic projections have gone way off the mark in the past, making many projects unviable.
This was in spite of a 20 per cent viability gap funding given by the government.
Take, for example, the Bandra-Worli sea link, constructed by Hindustan Construction Company after protests and cost overrun.
It is yet to break even.
“There is no certainty on the status of the Navi Mumbai airport and, hence, no one can make any projections on the traffic on the Navi Mumbai sea link.
As hundreds of clearances, including from the environment ministry, are required, delaying the project unnecessarily, we decided to stay away from the project,” said the CEO of an infrastructure firm on condition of anonymity.
Lack of liquidity and high finance costs are other reasons cited to refrain from bidding for the Rs 10,000-crore (Rs 100-billion)
SPECIAL: It's time for India Inc to go on a diet
India's longest bridge to connect Assam and Arunachal
JNPT wants only 'big boys' for the 4th container terminal
Street buys into quality stocks, only
'Happy coincidences': Yadav's wealth, CBI case, UPA's food bill