Govt to raise funds for road projects from capital market

Union Minister Nitin Gadkari on Thursday said the government will approach the capital market this month to raise funds for road projects.

Addressing an event, he said toll revenue of the NHAI will soar to Rs 1.40 lakh crore per annum in next three years from Rs 40,000 crore per annum currently.

"This month, I will be approaching the capital market to raise funds for road projects...Our toll income is very good and NHAI's rating is AAA...I am 100 per cent sure that we will get a good response from the capital market," the Road Transport and Highways minister said.

Gadkari said the insurance funds, pension funds have shown interest to invest in India's road projects because there is economic viability.

Last month, he had said the money will be raised through Infrastructure Investment Trusts (InvITs), and there will be an investment limit of Rs 10 lakh for retail investors.

The minister had also said the government will soon list InvITs on stock exchanges so that retail investors can trade in units of InvITs.

InvITs  are instruments on the pattern of mutual funds, designed to pool money from investors and invest in assets that will provide cash flows over a period of time.

Gadkari pointed out that the transport sector is responsible for 13.5 per cent of India's carbon emission, out of which the road transport's share is 90 per cent.

"We need to discourage use of personal vehicles and promote maximum use of modes of public transport," he emphasised .