Ministry of Road Transport and Highways to raise one lakh crore by monetising highways under TOT model: Nitin Gadkari
Kolkata/IBNS: The Ministry of Road Transport and Highways (MoRTH) will raise one lakh crore by monetising highways under the TOT model through NHI, Union Minister Nitin Gadkari said at an ASSOCHAM event.
Speaking at the webinar on ‘Ease of doing business for driving investment in roads and highways sector organised by chamber, the Minister highlighted the various steps and policies instituted by the government to boost the infrastructure sector.
“The government has given a massive push to economy by allocating $1.4 trillion for infrastructure to be invested by 2025. The highway sector has been at the forefront of performance and innovation. The government is targeting the construction of roads worth 15 lakh crores over the next two years," Gadkari said.
At 26%, roads has the largest share in the national monetization plan with a target of $20 billion over four years. MORTH is planning to raise 1 lakh crore through NHI by monetizing highways under Toll-operate-Transfer mode in the next five years," the minister added.
The Minister highlighted that the government is constructing 65000 kms of National Highways under the Bharatmala Phase 1 & 2 which is targeted to be completed by 2024.
In addition, we are developing 22 greenfield access controlled expressways.
Gadkari in his speech also congratulated ASSOCHAM on being instrumental in helping the government save Rs. 5,000 cr for Zojila Tunnel Project and it was possible only due to the use of efficient technology in tunnel construction.
“We have been through a tough time in terms of health and economy but now we are seeing positivity emerge around the globe. The government has been at the forefront in supporting industry through these tough times by promoting a business friendly and hassle free environment," the Minister said.
The benefits of a well-developed infrastructure project is many, increased economic activity, improved revenue base for government and productive spending which has the potential to create employment,” he addd.
Vineet Agarwal, ASSOCHAM President said, “The National Infrastructure Pipeline will lead to growth and create jobs. The importance of road is very high in relation to ease of doing business and logistics performance index."
"Today’s webinar will help better understand how public and private partnership can work together in the highway construction space. This is a great platform for exchange of ideas and where issues that needs a re- look can be deliberated upon," said Agarwal.
Deepak Sood, Secretary General, ASSOCHAM said, “Infrastructure leads to economic growth and economic growth gives fiscal space to the government. Spending on infrastructure is prudent as the benefits last for generations."
"Achieving the construction of 38 Kms of highway a day and that too during Covid is a tremendous achievement and now the vision is to take this to a 100 Kms a day. All this is possible thanks to the government’s initiatives and the time-bound and transparent delivery on the ground under the leadership of the Hon’ble Minister," he said.