India to raise Rs 10,000 crore to build highways

B D Narayankar

Press Trust of India

Bangalore, Nov 23: The National Highways Authority
of India (NHAI) would soon raise Rs 10,000 crore through a
public debt issue to fund various projects across the country,
Road Transport and Highways Minister C P Joshi said today.
"We are making efforts to raise Rs 10,000 crore debt from
the open market to fund various national highway projects in a
month's time," Joshi told reporters on the sidelines of Excon
2011 here.
"Finance ministry has given approval for raising only up
to Rs 10,000 crore. It is sufficient for the time being and we
will look at raising more funds as and when we take up new
road projects," he added.
Prime Minister Manmohan Singh has announced a target of
laying of 20 km of new roads every day and for that contracts
for about 7,300 km had to be awarded, he said.
The Ministry has already awarded contracts for 4,600 km
and the rest would be awarded in the remaining months, Joshi
said. "Before going to (the next parliamentary) election, we
will be able to do 20 km per day," he said.
Earlier, addressing the exhibition, Joshi said that in
the 12th Five Year Plan, investments in the highway sector "in
all likelihood" would increase by USD 185 billion.
He said Public Private Partnership projects have been
able attract investments of Rs 21,000 crore in the first four
months (to July) in the current fiscal.
The Centre had targeted investments worth 9 per cent of
gross domestic product (GDP) in infrastructure during the 11th
Five Year Plan.
Indian Earthmoving and Construction Industry Association
Chairman, Glenville da Silva, said there was a need for a
robust policy reforms and greater transparency in decision
making to tide over several economic-related problems
afflicting the country.
"We require a clearly articulated environmental policy
that will help clear logjams afflicting mining and power
projects," he said.
Silva also stressed the need for a new land acquisition
policy that would speed up project execution.
The recent debt crisis in Europe, the weakening of the
rupee against the US dollar and high inflation have induced
negative sentiments in the market, he said.