The Cabinet Committee on Economic Affairs (CCEA), has approved the proposal of highway developers seeking a relaxation of the exit clause.
The exist clause allows an investor with deep pockets to replace a promoter facing financial stress. The move will increase the M&A activity in the road sector. The substitution of developers can be done with the approval of NHAI, lender, and private developer. At present, there are limits on the extent to which a developer can exit.