PMO recommends controlling road infrastructure financing to NHAI

29 Aug 2019 Editorial Team

The Hybrid Annuity Model, that entailed the government providing 40 per cent of the project cost to the developer as a solution to expedite building of highways and attract more investments in the sector, has now taken a hefty toll on the government owned National Highway Authority of India (NHAI) that is heavily under debt, as reported.

Owing to the current situation that places NHAI in a hard position, the Prime Minister’s office in a letter to the Ministry of Road, Transport and Highways (MoRTH) has stated that road infrastructure is not financially viable, adding that the agency is packed with unplanned and excessive expansion of roads.

In addition to the letter referring to the model as unsustainable, it is also reported that industry analysts noted that a few points in the letter could lead to a substantial slowdown in road construction projects.

Three changes were recommended to the highway ministry in connection to NHAI, in the letter, reportedly. They are:

Reorganisation of the agency and its road portfolio and transforming it into a road asset management company.
Projects to be looked at in terms of commercial orientation.
Monetisation of the agency’s assets.

The rate of developing national highways has increased by more than double from 12 km per day in FY14 to 27 km per day in FY19, prompting a rise in debt at NHAI.

Infrastructure Transport

16 Sep 2025

Metro Line 2B Phase 1 to Boost Realty in Mumbai’s Eastern Suburbs

Mumbai’s real estate sector is set for a major boost as Phase 1 of Metro Line 2B, between Mandale and Diamond Garden, nears completion. The Mumbai Metropolitan Region Development Authority (MMRDA) has confirmed that mandatory rectifications are done, and inspections by the Commissioner of Metro Railway Safety (CMRS) have been carried out. The 5.39-km stretch with five stations forms part of the larger DN Nagar–Mandale corridor, designed to ease congestion and improve east–west connectivity. Passenger operations are expected by December 2025, with the full line slated for 2027. ..

WattPower wins Best Inverter award at Global Solar Expo 2025

WattPower, a leading renewable energy solutions provider, has won the award for “Best Inverter in the Utility Segment” at the Global Solar Expo 2025. The recognition underscores the company’s commitment to delivering reliable, high-performance and future-ready solar solutions for large-scale projects. At the forefront of utility-scale solar, WattPower manufactures advanced string inverters that directly feed power into the Indian grid. With robust technology, high-quality components and comprehensive product lifecycle support, its solutions stand among the most sophisticated in the ..

Awfis delivers 67,000 sq. ft. innovation hub for eBay in Bengaluru

Awfis Space Solutions, India’s largest flexible workspace provider and the first publicly listed workspace solutions platform, has partnered with eBay to establish a 67,000 sq. ft. innovation hub at Embassy Tech Village, Bengaluru. The mandate covers design, build and management of the new office, which will act as a strategic hub supporting diverse functions and accelerating eBay’s AI-first commerce strategy. The centre will focus on artificial intelligence, engineering, product development and applied research, strengthening eBay’s growth in India. Embassy Tech Village, North Beng..