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GVK Power & Infrastructure Ltd has terminated a road contract with NHAI.
The tollway was to come up in Shivpuri Dewas section in Madhya Pradesh. But the concessionaire GVK decided to terminate the contract entered by its subsidiary with NHAI last year due to delays in securing mandatory clearances, including right of way.
Recently GMR Infra also terminated a major road project contract citing delays in securing clearances.
PTI adds: The project included 4-laning of the Shivpuri Dewas section of National Highway from 236 km to 566.45 km in Madhya Pradesh, the company said.
Last week, another core sector firm GMR Infrastructure cancelled its contract with NHAI for building the Kishangarh—Udaipur—Ahmedabad highway.
GMR Kishangarh—Udaipur—Ahmedabad Expressways, subsidiary GMR Infrastructure, had terminated the concession agreement entered into with NHAI for six-laning of 555 Km road.
Meanwhile, the NHAI, last week, moved the Supreme Court seeking modification of its guidelines mandating forest clearance prior to environmental clearance, saying the related procedures have delayed and stalled 22 important projects worth over Rs 20,000 crore.
It is feared that long delays in receiving such clearances are forcing the companies to abandon these projects as they are mainly debt-funded projects.
Shares of GVK Power and Infrastructure closed at Rs 15.11 apiece, up 1.96 per cent on the BSE today.
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