Nitin Gadkari urges agencies to create an infra fund

26 Apr 2021 CW Staff

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

Resources

03 Jun 2026

Jyoti Structures Launches Heat Safety Drive Across Sites

Jyoti Structures (JSL) has strengthened heat safety measures across its project sites and manufacturing facilities as temperatures rise across India. The company has implemented a Summer Safety Plan covering all transmission line projects to address risks related to heat stress, dehydration and worker fatigue.The initiative includes rescheduling work away from peak afternoon temperatures, provision of drinking water, ORS and lemon-salt solutions, and installation of rest shelters near work areas. Daily toolbox talks, worker health monitoring, first-aid preparedness, emergency transport arrange..

Real Estate

03 Jun 2026

MHADA Declares 82 Buildings Most Dangerous in Central and South Mumbai

The Maharashtra Housing and Area Development Authority (MHADA) has declared 82 buildings as most dangerous across Central and South Mumbai and has appealed to residents to vacate immediately. The list, prepared after structural assessments by the authority, identifies buildings judged to pose imminent risk to occupants and to passersby. Local civic bodies have been asked to coordinate evacuations and to make arrangements for temporary shelter and rehabilitation for displaced households. Officials said the authority prioritised buildings with visible structural distress, severe cracking, tiltin..

Infrastructure Transport

03 Jun 2026

Damage Reported At Halwara Airport Terminal After First Rains

Severe damage was reported at the terminal of Halwara Airport during the first major rain spell of the season, prompting immediate concern among aviation and local authorities. Images from the site showed water ingress and visible deterioration of the terminal interior, affecting passenger areas and ancillary services. The airport authority suspended certain operations temporarily to assess structural safety and ensure passenger wellbeing. Preliminary inspections have prioritised electrical systems and roof seals to prevent further water ingress. State aviation officials ordered a formal inqui..