The National Highways Authority of India (NHAI) has terminated the Udaipur bypass road project awarded to MBL Infrastructures. The project was awarded to the company on hybrid annuity model (HAM).
The company secured the road project at a bid price of Rs 7,790 crore, in late June 2016. This is the third HAM project to be cancelled due to lenders’ concerns over viability of the projects, under the newly introduced model.
The project was terminated as the bankers declined to furnish guarantees for the road project.
The company is also expecting financial closures for its other two HAM projects.