+
 Surplus funds of RBI can be used for infra projects: Nitin Gadkari
ROADS & HIGHWAYS

Surplus funds of RBI can be used for infra projects: Nitin Gadkari

On Wednesday, Minister for Road Transport & Highways, Nitin Gadkari, told the media that infrastructure projects in the country require low-cost financing, and surplus reserves of RBI can be used for the same.

Addressing a virtual CII event, Gadkari told the media that the National Highways Authority of India (NHAI) must also have a financial arm like the Power Finance Corporation (PFC).

Gadkari said that the country has a surplus of dollar reserves. He will discuss with the RBI governor about how to formulate a policy using which they can use the foreign exchange reserves for infrastructure development in the nation.

Recently, a Parliamentary panel has also recommended that the RBI may consider the possibility of using surplus reserves to fund long-term road infrastructure projects.

RBI might also look into the feasibility of using surplus reserves for creating sovereign wealth reserve to fund long-term infrastructure assets.

Gadkari told the media that they require some financial organisations, those who can decrease interest cost for infrastructure, adding that the Indian Railways has the Indian Railway Finance Corporation (IRFC), the Power Ministry has Power Finance Corporation but NHAI does not have any financial arm.

They need one organisation, where NHAI stakes and financial institution stakes are there. With a joint venture, they can formulate the policy, Gadkari suggested.

Additionally, the minister suggested that in place of a 2% bank performance guarantee, the entire project can be guaranteed.

Gadkari told the media that the road ministry aims to raise Rs 1 lakh crore through the monetisation of highway projects.

Image Source


Also read: Nagpur gets Rs 1,824 cr from Central Road Funds for various roads

On Wednesday, Minister for Road Transport & Highways, Nitin Gadkari, told the media that infrastructure projects in the country require low-cost financing, and surplus reserves of RBI can be used for the same. Addressing a virtual CII event, Gadkari told the media that the National Highways Authority of India (NHAI) must also have a financial arm like the Power Finance Corporation (PFC). Gadkari said that the country has a surplus of dollar reserves. He will discuss with the RBI governor about how to formulate a policy using which they can use the foreign exchange reserves for infrastructure development in the nation. Recently, a Parliamentary panel has also recommended that the RBI may consider the possibility of using surplus reserves to fund long-term road infrastructure projects. RBI might also look into the feasibility of using surplus reserves for creating sovereign wealth reserve to fund long-term infrastructure assets. Gadkari told the media that they require some financial organisations, those who can decrease interest cost for infrastructure, adding that the Indian Railways has the Indian Railway Finance Corporation (IRFC), the Power Ministry has Power Finance Corporation but NHAI does not have any financial arm. They need one organisation, where NHAI stakes and financial institution stakes are there. With a joint venture, they can formulate the policy, Gadkari suggested. Additionally, the minister suggested that in place of a 2% bank performance guarantee, the entire project can be guaranteed. Gadkari told the media that the road ministry aims to raise Rs 1 lakh crore through the monetisation of highway projects. Image Source Also read: Nagpur gets Rs 1,824 cr from Central Road Funds for various roads

Related Stories

Gold Stories

Next Story
Infrastructure Transport

97 Per Cent Of Rongjeng-Mangsang-Adokgre Road Nears Completion

Deputy Chief Minister in-charge of public works Prestone Tynsong said in Shillong on 26 August that 97 per cent physical progress had been achieved on the ongoing Rongjeng-Mangsang-Adokgre road being constructed under the Non-Lapsable Central Pool of Resources (NLCPR). He noted the project was sanctioned in 2017 and that the stipulated time for completion had been 24 months from issue of the final work order. The deputy chief minister informed the assembly that the government had decided to include the remaining work under a World Bank project. In reply to a query from Rongjeng MLA Jim M Sangm..

Next Story
Infrastructure Transport

First TBM Starts Digging Five Point Three Kilometre Tunnel Under SGNP

The Goregaon-Mulund Link Road (GMLR) Phase three (B) project has reached a key milestone as the first tunnel boring machine (TBM) began excavation of the first of two tunnels beneath the Sanjay Gandhi National Park (SGNP). The machine, named Tulsi, started cutting a five point three kilometre bore that will link Dadasaheb Phalke Chitranagari in Goregaon East with Amar Nagar in Mulund West. Officials issued a statement noting the commencement of tunnelling work under the protected green belt. The twin tunnels are being constructed using mechanised tunnelling methods that aim to limit surface di..

Next Story
Infrastructure Transport

UP Approves Two Expressways And Rs 240 bn Infrastructure Push

The Uttar Pradesh Cabinet approved a series of infrastructure and industrial investment proposals totalling Rs 240 billion (Rs 240 bn), including two major expressway projects, a manufacturing and logistics cluster in Sultanpur and incentives for 11 industrial projects across the state. The decisions, taken at a meeting chaired by Chief Minister Yogi Adityanath, underline the state government’s focus on expanding road connectivity around emerging industrial hubs while attracting manufacturing investment to districts beyond major urban centres. The approvals cover both greenfield expressway c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code