+
Nitin Gadkari urges agencies to create an infra fund
ROADS & HIGHWAYS

Nitin Gadkari urges agencies to create an infra fund

Minister of Road Transport and Highways Nitin Gadkari has urged highway builders involved in road construction projects across India to create an infrastructure fund to finance road projects.

Gadkari suggested agencies to put in Rs 100 crore each to form an infra finance firm. He made this proposal while speaking at a virtual event organised by industry body Assocham. The minister said that only big contractors who are financially strong and have good relations with banks are getting funds.

He suggested agencies to put Rs 100 crore each to form an infrastructure finance company and said he would ask the National Highways Authority of India to put in equity and said the agencies could then tie up with a foreign fund.

Gadkari said that the Ministry of Road Transport and Highways (MoRTH) does not have a financial arm to provide support to the contractors. Bank guarantee and financial closure are becoming a problem in case the hybrid annuity model (HAM) for building national highways, said Gadkari.

Gadkari cited examples of Indian Railways, which has an arm called the Indian Railway Finance Corporation (IRFC), and the power ministry, which has Power Finance Corporation (PFC) to show where his ministry is lacking as far as funding is concerned.

Road infrastructure in India has been progressing at a rapid rate, with a record 37 km of roads being built every day. Despite the ongoing pandemic and restrictions, India continued to add significant length to the existing road network across the country.

The National Highways Authority of India (NHAI) recently achieved a major feat by building a four-lane highway of 2,580 m in length within 24 hours, creating a world record. By March 20 this year, India developed 1,37,625 km of highways compared to only 91,287 km in April 2014. During this period, India has also spent five times more money to construct highways.

Image Source


Also Read: Bharatmala Pariyojana: Uttarakhand projects worth Rs 1.2k cr approved

Also Read: National road safety: Govt to set up advisory body

Minister of Road Transport and Highways Nitin Gadkari has urged highway builders involved in road construction projects across India to create an infrastructure fund to finance road projects. Gadkari suggested agencies to put in Rs 100 crore each to form an infra finance firm. He made this proposal while speaking at a virtual event organised by industry body Assocham. The minister said that only big contractors who are financially strong and have good relations with banks are getting funds.He suggested agencies to put Rs 100 crore each to form an infrastructure finance company and said he would ask the National Highways Authority of India to put in equity and said the agencies could then tie up with a foreign fund. Gadkari said that the Ministry of Road Transport and Highways (MoRTH) does not have a financial arm to provide support to the contractors. Bank guarantee and financial closure are becoming a problem in case the hybrid annuity model (HAM) for building national highways, said Gadkari. Gadkari cited examples of Indian Railways, which has an arm called the Indian Railway Finance Corporation (IRFC), and the power ministry, which has Power Finance Corporation (PFC) to show where his ministry is lacking as far as funding is concerned. Road infrastructure in India has been progressing at a rapid rate, with a record 37 km of roads being built every day. Despite the ongoing pandemic and restrictions, India continued to add significant length to the existing road network across the country. The National Highways Authority of India (NHAI) recently achieved a major feat by building a four-lane highway of 2,580 m in length within 24 hours, creating a world record. By March 20 this year, India developed 1,37,625 km of highways compared to only 91,287 km in April 2014. During this period, India has also spent five times more money to construct highways. Image Source Also Read: Bharatmala Pariyojana: Uttarakhand projects worth Rs 1.2k cr approved Also Read: National road safety: Govt to set up advisory body

Next Story
Infrastructure Energy

UERC Rejects Pleas Over Cancelled 200 MW Solar Awards

The Uttarakhand Electricity Regulatory Commission (UERC) has rejected review petitions filed by 12 solar developers against the cancellation of Letters of Award (LoAs) issued under the state’s 200 MW Solar Programme.The scheme, launched by the Uttarakhand Renewable Energy Development Agency (UREDA) under the 2013 solar policy, aimed to help Uttarakhand Power Corporation Ltd (UPCL) meet its renewable purchase obligations through tariff-based competitive bidding.The projects—classified under the Type I category—had original commissioning deadlines in 2019–2020, later extended multiple ti..

Next Story
Infrastructure Energy

Solarium Wins Rs 266 Million Rooftop Solar Orders

Solarium Green Energy has secured two significant work orders valued at a combined Rs 266 million for rooftop solar projects across various locations in the Northeastern States, under the Ministry of Home Affairs.The first order, worth approximately Rs 129.8 million, was awarded by NTPC Vidyut Vyapar Nigam Limited (NVVN) for the development of a 3,319 kW rooftop solar photovoltaic (PV) project. This was tendered under the NVVN’s “Selection and Discovery of L1 Rates for Rate Contract for EPC of Grid Connected Rooftop Solar PV Projects (51–200 kW) across India”. The project is scheduled ..

Next Story
Real Estate

Omaxe Secures Rs 5 Billion From Oaktree For Expansion

Omaxe Group has raised Rs 5 billion in funding from Oaktree Capital Management LP, a global investment firm specialising in alternative investments, to fuel the development of ongoing projects and support future growth plans.In a regulatory filing dated 28 July, the company confirmed that the funds will support construction and infrastructure development across key markets, including New Chandigarh, Lucknow, Ludhiana, and Faridabad. The capital will also be directed towards flagship projects such as Omaxe State in Dwarka, an upcoming integrated township in Amritsar, and a new township in Indor..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?