In an attempt to lift the construction sector from its current slumber, the NITI Ayog has decided to inject Rs. 40,000cr, benefitting the contractors and concessionaires of government projects that are under dispute.
In this connection, the Aayog directed central public sector units to release 75% of the amount due to them to revive the sector, whereby, part of the money paid will be used to clear bank debt, which will also help reduce the stress on lenders struggling with bad loans. The push follows the government’s decision on August 31 to release construction sector funds locked up in arbitration. NITI Aayog has written to ministries and departments to implement the decision involving 597 cases blocking Rs. 52,488-cr spread across central public sector enterprises including National Highways Authority of India, NTPC, NHPC and Indian Oil Corporation which are under arbitration or pending in court.