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Highways ministry lines up projects worth Rs 50,000 crore to be awarded in next 3 months

The highways ministry was planning to award road construction projects worth over Rs 500,000 crores over the next three months to boost demand in the construction and automobile sector, Gadkari had said. National Highway projects with a cumulative length of 5,493 km were awarded in 2018-19, Gadkari said.

, ET Bureau|
Nov 28, 2019, 04.28 PM IST
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PTI
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Since April this year, the highways ministry has awarded 168 road projects covering a length of 3,215 km, Gadkari said.
NEW DELHI: The highways ministry is likely to award road projects with an aggregate length of around 4,500 km worth Rs 50,000 crores, Union minister of road transport and highways Nitin Gadkari informed the Parliament on Thursday.

Gadkari in September said that he had asked his department to identify road projects to spur economic activity in the country.

On Thursday, Gadkari said in a written response in the Parliament, “Award of road projects covering a length of 4,471 km with an approximate cost of Rs 50,000 crore has been targeted during the next three months.”

The highways ministry was planning to award road construction projects worth over Rs 500,000 crores over the next three months to boost demand in the construction and automobile sector, Gadkari had said at a press conference in September.

Since April this year, the highways ministry has awarded 168 road projects covering a length of 3,215 km, Gadkari said.

National Highway projects with a cumulative length of 5,493 km were awarded in 2018-19, Gadkari said in a separate response.

Capacity constraints on the part of developers, lack of availability of debt products, were among reasons behind weak participation of private sector in road projects, Gadkari said.

“Major highway developers had capacity constraints including over-leveraged financials due to excessive exposure of infrastructure projects including highways,” Gadkari said.

The total share of private investment in total road construction during the last five years is about Rs 98,100 crore, Gadkari said.

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