According to a senior official, MoRTH has considered plans to maintain the rate of highway development and build up to 12,500 km of highways in the current fiscal year.
Alka Upadhyaya, the secretary of MoRTH, said on Wednesday that Rs 10,000 crore would be raised in FY 2023–2024 using the Infrastructure Investment Trusts (InvITs) method, according to PTI.
She added that the government set goals to award 12,000 km and build 12,500 km of highways in the nation for 2023–2024 and that MoRTH planned to maintain the development pace of highways throughout the nation.
The ministry has not yet released information on highway project construction and awards for the years 2022–2023. The road transport and highways ministry built 10,237 kilometers in 2019–20, 13,327 kilometers in 2020–21, and 10,457 kilometers in 2021–22.
Raising Of Funds
According to Upadhyaya, MoRTH has developed a number of creative methods for financing its infrastructure projects by enlisting the help of the private sector for highway development. She added by mentioning that there are plans to raise Rs. 10,000 cr. through InvIT mode in the financial year 2023-24.
“Till February 28, 2023, Rs 10,200 crore has been raised through InvIT in two phases, for a total length of 635 km, while InvIT III is planned to be awarded in April 2023 for a total of Rs 10,000 crore.”
Infrastructure Investment Trust (InvIT), which follows the model of mutual funds, is made to collect money from investors and invest it in assets which would generate cash flows over time.
A Few Pointers
Currently, MoRTH uses three different methods to monetize its assets: project-based financing, the toll-operate-transfer (TOT) model, and invIT. These methods give all types of investors the chance to invest in assets related to highways and related infrastructure.
She responded that the ministry has already started road marking and piloting signage in accordance with international best practices, when asked whether MoRTH plans to issue standards for road marking and signage to address violations of lane driving.
Expressways and national highways in India are primarily built by the National Highways and Infrastructure Development Corporation Ltd (NHIDCL) and the National Highways Authority of India (NHAI).
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