National Highways Authority of India (NHAI) has warned that funding restraints for highway developers would make it hard for it to go ahead with Build Operate Transfer (BOT) projects in the sector.

The NHAI pointed out that a total of 13 highway projects received no financial bids during the financial year of 2012-13, even when some of those projects were offered more than once.

The highway authority blamed severe equity crunch and clampdown on mining in some areas for the issue. RP Singh, chairman of NHAI, said that the market was suffering a total lack of equity.

Speaking on the topic, RP Singh cautioned, "Unless our two proposals on easier exit options for concessionaires and back-loading of premium are agreed to, it will be very hard to go ahead with BOT projects in the sector."

During the last financial year, NHAI manage to award highway projects covering 1,116 kilometers, while 1822 kilometers failed to attract any bids.

To make the situation even worse, infrastructure giants GMR and GVK walk out of huge projects worth more than Rs 10,000 crore earlier this year. As per sources, Ashoka Buildcon is also preparing to walk out of project worth Rs 1,100 crore in Odisha.

While the infrastructure companies are citing long delays in regulatory clearances, NHAI believes that companies are walking out of projects because they are facing severe financial restraints.