Cabinet clears Rs 7 trillion worth of roads
The government has announced an ambitious road outlay of Rs 6.92 trillion for the development of a network covering 86,377 km by 2022. Finance Minister Arun Jaitley has reportedly said that the large amount of infrastructural spending will encourage private sector investment.
This umbrella programme includes Bharatmala projects of 34,800 km at an estimated cost of Rs 5.35 trillion and the 48,877 km of roads to be constructed by NHAI and the Ministry of Roads and Highways at the cost of Rs 1.57 trillion. According to reports, to ensure timely completion of these projects, NHAI along with state public work departments and the National Highway and Infrastructure Development Corporation, will work together. This exercise will also create around 142 million man-days of jobs.
The Bharatmala programme will be funded by raising a debt of Rs 2.09 trillion from the market and another Rs 1.06 trillion via private investments through public-private partnerships. An additional Rs 2.19 trillion will reportedly be given by the Central Road Fund (CRF), TOT projects, and toll collection done by NHAI. For other projects, the CRF will provide with another Rs 97,000 crore whereas Rs 59,000 crore will be support from gross budget.