National Highways Authority of India (NHAI) has secured permission to raise upto ₹70,000 crore by way of stock market instruments, according to Nitin Gadkari, Union Minister for Road Transport & Highways, Shipping and Water Resources, River Development & Ganga Rejuvenation.

Interacting with the Hindu Group of journalists on Monday, he explained his Ministry was keen on tapping salaried class, senior citizens and other middle class people in NHAI’s fund raising through bonds and other instruments in order to fund the highway expansion projects. They will benefit from higher interest rates as compared with banks which give about 6 per cent.

“We want to give close to eight per cent interest for those who invest in our instruments. Instead of taking money from big investors, we are now interested taking money from salaried class and giving them a good return,” he said.

NHAI is AAA-rated by global agencies. Its toll income is ₹10,000 crore and it is in the process of monetising projects worth ₹125,000 crore.,” he added.

The monetisation of operational road assets will reduce dependence on borrowings.

Gadkari also stated that with transparent mechanism, better co-operation from states for land acquisitions, quicker environment clearances, the government is confident of increasing the road construction of 28 km per day now to 40 km a day during next year.

Gadkari also expressed happiness over gaining momentum for the Hybrid Annuity Model in the road sector. There is full transparency in this model. NHAI releases 40 per cent of the total project cost, while the balance 60 per cent is arranged by the contractor, he said.

Sagarmala project

In Sagarmala, the government is expecting investments to the tune of ₹14 lakh crore. Of which 4 lakh crore will be spent on improving port-road connectivity through modernisation of ports. In this ₹2.8 lakh crore worth of projects have already been commenced.

“In Tamil Nadu, we are expecting investments to the tune of ₹250,000 crore under Sagarmala programme,” he said.

Gadkari also said the government had taken up 24,500 km of roads for development in phase 1 of Bharatmala programme and the capital cost for the same has been estimated at ₹7.50 lakh crore. “We hope to start the work for about 40 per cent of the phase 1 project. Land acquisition is in progress,” he added.

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