NHAI drafting new financing plan

After the Planning Commission rejected its financing plan for the second time, the National Highways Authority of India (NHAI) is preparing a new draft plan.

The earlier proposals were rejected citing that NHAI would find it difficult to borrow funds from the market.

"NHAI had submitted the draft financing plan to the Planning Commission. But some issues have been raised on the matter. In this regard, I have asked NHAI to come up with a final financing plan after reworking the estimates. I think a final, well defined plan will help," said Road Secretary and Officiating NHAI Chairman RS Gujral.

NHAI had submitted a financing plan in July 2010 asking for permission to borrow more funds, than the Rs 1.92 lakh crore approved earlier, from the market by 2030-31.

The earlier financing plan was approved by a committee headed by Planning Commission Member B K Chaturvedi.

In the new financing plan, NHAI had raised the overall fund requirement from Rs 8.12 lakh crore to Rs 9.71 lakh crore.

NHAI had also put the borrowing requirement at Rs 2.56 lakh crore, which was likely to get reduced in the new plan.

The Planning Commission had rejected the plan saying NHAI may not have the capacity to raise funds to the extent quoted in the plan and in case it borrows the money, others might be starved of funds.

Gujral did not share anything in the financing plan but said: "My assumption is that the Planning Commission has some internal issues on the matter. That is why it is taking time in giving its final stand. People there think that NHAI cannot raise the huge amount."

The road transport ministry has also decided to increase the number of technical members on the NHAI board to seven from three.

"We need to add more technical expertise in NHAI and will be sending a proposal to the Cabinet on adding four new technical members in a week. We also plan to add a large number of other employees," said Gujral.

To start with, the highways authority is planning to recruit six chief general managers.