Road transport and highways minister Nitin Gadkari said that his ministry plans to execute infrastructure projects worth Rs 7 lakh crore over the next two to three years, urging investors to invest in the sector without worrying about the viability of projects.
“The internal rate of return in the road sector is very high and hence there is no need to worry about economic viability,” Gadkari said at the National Conference on Investment Opportunities in Highways, Transport & Logistics in Mumbai.
The minister said that issues like land acquisition and delays in projects had stalled many projects in the past which led to banks facing problems on the credit they had extended to these projects. But he assured investors and bankers, including State Bank of India chairman Dinesh Kumar Khara who was also at the conference, that the government has taken steps in the last few years that will ensure projects don’t face such issues going ahead.
“There are no obstructions in investing in infrastructure now,” he said.
Gadkari also said that the government is focused on lowering logistics costs in India, which is significantly higher compared to China or the US.
“We need to reduce the logistic cost and build multimodal infrastructure which will help manufacturing, spur economic growth and create employment,” he said.
Flex-fuel policy
The minister said the government is working on a policy for the automobile sector for the introduction of flex-fuel engines in vehicles.
“We are soon issuing an advisory on flex engines. In two-three years, our vehicles will get converted into electric vehicles. Running cost of electric vehicles will be similar to or less than vehicles that run on petrol,” he said.
The minister added that auto majors like Toyota, Suzuki and Hyundai have assured that they would be scaling up flex-fuel engine manufacturing.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
