Giridhar Aramane, the Secretary of the Ministry of Road Transport & Highways and the Chairman of National Highways Authority of India (NHAI), Thursday, said that the 6,000 km of Bharatmala projects will be awarded in FY22.
Aramane also spoke about the expected project pipeline for roads and the expected execution for the year.
The Principal Economic Adviser, Sanjeev Sanyal, while making an important statement in an interview to CNBC-TV18, said that the government does intend to keep up with its expenditure programme and that the roads and highways sector in the infrastructure sector is going to be an important part in terms of the growth ahead.
So, spends have been picking up, there is an unlocking of more funds with the NHAI's infrastructure investment trust (InvIT) that the market is awaiting.
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“We have a very good pipeline as the Cabinet had approved Bharatmala programme in 2016-17. So far this year, there is no problem because of the good work done over the last 1.5-2 years by both the board of the NHAI as well as the Standing Finance Committee of the ministry. The pipeline with solid viable projects is going to give us good achievement this year also,” Aramane said in an interview to CNBC-TV18.
According to him, 6,000 km of Bharatmala projects will be awarded in FY22. “For FY22, our total target for award is around 6,000 km because the greenfield highways, most of them are in advance stages; either they have been awarded, under construction or underbidding. So, we are likely to award most of the greenfield highways by the year-end,” said Aramane.
“There will be 2-3 access control highways (limited and designated entry and exit points), which will be pending for the next financial year. So, this 6,000 kilometre of Bharatmala projects, costing around Rs 2.5 lakh crore, will be awarded this year and also this will involve a lot of private investment as the hybrid annuity model (HAM) has become the favourite of the developers, which involves 60 per cent of private investment and government contributes 40 per cent,” he said.
On monetisation, Aramane said, “We are on track on national monetisation pipeline implementation also. Rs 30,000 crore is the total target for this year and out of that around Rs 10,000-12,000 crore have to be spent on the Delhi-Mumbai Expressway. So most of the expenditure that will incur will generate through monetisation will be on the Delhi-Mumbai Expressway. InvIT, we are expecting to mobilise around Rs 8,000-9,000 crore.”
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He further said that NHAI will be looking to put up charging infra (for electric vehicles) at 50-60 km intervals on all the national highways.
For the entire interview, watch the video