Government plans to utilise 480 highway projects to raise funds from banks: Nitin Gadkari

Addressing concerns of investments in highway projects, Minister of Road Transport and Highways Nitin Gadkari on January 28 said the Centre plans to use new models to use currently viable highway projects to raise funds from banks.

He also stated that the Ministry of Roads and Highways has urged RBI to allow financing of infrastructure projects for a period of 30 years.

"We can make a tripartite agreement for the toll collected from this project and we will open an escrow account in the bank for it. NHAI will raise loans for these projects. We have 480 bankable projects today for which we can raise loans and repay it," said Gadkari.

Reiterating that NHAI does not have financing issues, he said the loans may be repaid within 21-22 years.

According to Gadkari, five banks are interested in investing Rs. 2.5 lakh crore in highway projects.

Speaking at an event on road safety, the Minister said the government has received Rs 7,000 crore each from the World Bank and ADB. The funds received will be utilised to enhance road safety.