Raised Rs 8,361 cr from highway monetisation in FY22, Gadkari tells RS

This is about 64% of the targeted revenue of Rs 13,000 cr for the current financial year that comes to a close in two weeks

Topics


Ministry of Road Transport and Highways | National Highways | Nitin Gadkari


Dhruvaksh Saha  | 
New Delhi 


The Ministry of Road Transport and Highways has raised Rs 8,361 crore through monetisation of national highways so far this fiscal year, Union Minister Nitin Gadkari told the Rajya Sabha in a written reply on Wedn­esday. The amount is 64 per cent against the targeted revenue of Rs 13,000 crore for 2021-22, the minister said. The ministry had reportedly accelerated the pace of monetisation, with a target of monetising 21,700 km of national highways over the next three financial years.

The ministry primarily monetises national highways through the toll-operate-transfer (ToT) model, or through infrastructure investment trusts (InVits). Under ToT, the government allows private players to collect toll fees for a specific period.

Roads form a significant portion of the national monetisation pipeline (NMP). Last year, the central government had identified national highway and road assets worth Rs 1.6 trillion to be monetised by 2024-25, while the Centre’s total monetisation target for the same period is Rs 6 trillion.

8,045 km of highways constructed till Feb

After having dropped to a five-year low in December, the pace of national highway construction increased from 20.17 km/day to 24.08 km/day. Minister Gadkari informed the Rajya Sabha that the ministry, through its implementing agencies, has constructed 8,045 km of national highways till February. Prior to the release of this data, analysts had predicted the ministry to achieve 10,000-11,000 km of highway construction this year.

The ministry had initially targeted an annual construction rate of 40 km/day, or 14,600 km for the full year. This target was later revised to 12,000 km. In comparison, the previous two financial years had seen the construction of 13,327 km and 10,237 km, resp­ectively. Sector experts believe that highway construction faced various challenges this fiscal year, owing to two waves of Covid-19, which saw several localised restrictions, and ext­ended monsoons which had an adv­erse impact on construction activity.

Gadkari, in his reply, added that the ministry plans to construct almost 29,000 km of national highways over the next two fiscal years.

The National Highways Authority of India (NHAI) and National High­ways and Infrastructure Deve­lop­ment Corporation (NHIDCL) are the main agencies responsible for exe­cution of the Centre’s highway projects.

National highways in India have a total length of 140,995 km. The government intends to expand the national highways network by 25,000 km in 2022-23, which includes both construction of national highways and conversion of state highways into national ones.

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