BS reported that National Highway Authority of India will raise INR 10,000 crore from the markets within the next one month to fund the various National Highway projects in the country.

Mr CP Joshi union minister of road transport and highways said that “Just a week ago, the finance ministry gave us approval to raise INR 10,000 crore through an infrastructure bond issue for construction of highways across the country. It is sufficient for the time being and we will look at raising more funds as and when we take up new road projects.”

Mr Joshi said that the prime minister has set a target of achieving 20 km road construction every day and to achieve this target the government needs to award projects for 7,300 kms every year over the next three consecutive years. He added that “We have so far awarded projects for 4,600 kms this year and the balance will be awarded in the remaining months of this fiscal.”

Mr Joshi said that “We have not been able to achieve 20 km per day, but we are confident of doing it before the next general elections in 2014.”

In the budget for this fiscal (2011-12), finance minister Mr Pranab Mukherjee made a provision for the first time to allow NHAI to raise funds as the government’s share of financing the roads sector.

Though the highway authority planned to raise the amount through private placement earlier, rising interest rates had forced it to opt for the public issue.

The proposed fund will be used to partly finance highway projects to be executed on build, operate and transfer basis and for viability gap funding through which the government pays to make the projects viable financially.

(Sourced from BS)