Gammon Infrastructure and the National Highways Authority of India (NHAI) have agreed to terminate concession contracts for two road projects. Both project were awarded to Gammon Infrastructure in 2012.
Construction for the projects had not started due to lack of land clearances despite two years since being awarded. The two road projects are:
The company had achieved financial closed on both projects in April 2013.
A senior Gammon official stated:
We realised that the time taken for land clearances was just too long. NHAI was also trying to get those clearances, but since nothing really was working out, we mutually decided to end the concession agreements.
According to sources, these projects may come up for re-bidding at a later date when substantial land clearances was accomplished.
Shares of Gammon Infrastructure Projects raised as much as 6.7 percent intraday after the company terminated concession agreements for the highway projects.