Budgetary Allocation for Road Sector

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Budgetary allocation of the Ministry during the year 2019-20 is Rs. 83,015.97crore. Apart from the above, National Highways Authority of India (NHAI) has been authorized to raise Rs. 75,000croreas Internal and Extra Budgetary Resources (IEBR).

There has been a decline in the private sector participation due to various factors such as non-availability of equity with Concessionaires, difficulties in getting financing from Financial Institutions, failure of projects awarded during 2010-11 & 2011-12, etc. The Ministry took initiatives thereafter to implement projects primarily on Engineering- Procurement-Construction (EPC) mode and Hybrid Annuity Model (HAM) of Contracting. For projects awarded on HAM, 40% of the Project Cost is paid by Government/ NHAI as contribution support / grant to the Private Developer and the balance 60% is arranged by the successful bidder in lieu of deferred Annuity Payments during Concession Period.

Government has also taken initiatives for raising funds through monetization of completed road projects on Toll-Operate-Transfer (TOT) mode. Further NHAI has been authorized to raise funds through Infrastructure Investment Trust (InvIT) and securitization of toll revenue so as to get long term borrowing from Banks, etc. These measures have successfully enabled mobilization of additional resources.

This information was given by the Union Minister for Road Transport and Highways Shri    Nitin Gadkari in a written reply in Lok Sabha today.